AusGroup wins A$12m Aussie offshore contract

ENERGY and resources specialist AusGroup has secured a new contract worth A$12 million (S$15.2 million) from an unnamed international offshore construction services client.

AusGroup will supply supervision and labour to the client for the offshore installation of a production platform topside, jacket and offshore pipeline on the construction work on the Montara offshore oilfield development project off the north-west coast of Australia.

Work is expected to start next month and scheduled for completion by October.

The latest deal brings AusGroup's contracts secured in less than two weeks to about A$38 million, taking its total order book to more than A$190 million.

'These new orders represent a new market sector for AusGroup,' said AusGroup managing director John Sheridan.

'It is a good start and we look forward to continue the growth.'

AusGroup is primarily based in Australia, where it is a supplier of total engineering solutions in the oil, gas and resource-mining sectors.

The new contract will provide it with exposure to the offshore construction services sector in Australia. AusGroup believes its ability to recruit specialist offshore personnel, as well as manage associated safety and industrial relations issues, puts it in good stead to secure additional offshore construction services-related contracts.

Just last week, the group announced a new contract from a 'blue-chip' client worth about A$26 million.

That contract - for which work is to begin in May and finish in December - came from a global mining resources firm and is for the fabrication, supply and installation of structural and mechanical piping and electrical systems for a new iron ore facility in Western Australia.

AusGroup also has in the pipeline plans to increase the output of its subsidiary Cactus Engineering, a manufacturer of subsea equipment, with the recent purchase of a new facility in Tuas.

For the half-year ended Dec 31, 2007, AusGroup's net profit hit A$12.1 million, an increase of 47 per cent. Revenue rose 60.4 per cent to A$202.2 million.