Southern Cross Electrical Engineering Limited (ASX: SXE) is up 3.67% at the time of writing on the announcement of securing an $18 million contract with Rio Tinto.

Announcement extract:

Southern Cross Electrical Engineering Limited (ASX: SXE) is pleased to announce that it has been awarded a contract valued at more than $18 million by Rio Tinto for work at their refinery site on the Gove Peninsula in North East Arnhem Land in the Northern Territory.

The works are part of Rio Tinto’s rehabilitation of the site. They include the isolation and re-routing of electrical and hydraulic services to the refinery. Mobilisation is expected to commence in the first quarter of 2020 with completion by March 2021.

Commenting on the award, SCEE Managing Director Graeme Dunn said “We are pleased to secure another significant award in the resources sector, following closely on from our announcements of a number of new resources projects in December 2019.”

Disclosure: I own

Southern Cross Electrical (ASX: SXE) is an electrical, instrumentation, communication and maintenance services company.

Statistics:

Market Capitalisation: $152,282,906 (@61.5)

Earnings/Share:  5.44 cents

Price/Earnings Ratio: 11.31

NTA/Share: 32 cents

Dividend/Share: AUD 3 cents

Dividend Yield: 4.88%

Commentary:

• Recently granted a number of projects across a number of industries in December, including approximately $65m of E&I works at the Kemerton lithium processing plant and a number of other new contracts with a total value of over $35m across the commercial, resources, health infrastructure and telecommunications sectors.
• FY19 revenue of $386.0m up 11%, EBITDA of $23.6m up 13% and NPAT of 12.7m up 51% on prior year, primarily due to growth in public infrastructure activity.
• Work diversified across different industries
• Strong commercial and infrastructure  pipeline
• Cash on hand of $53m and no debt (30 June 19)
• Price trending up