Valmec Ltd (ASX:VMX) has provided an earnings guidance of $3.1 million in underlying earnings before interest, tax and depreciation (EBITDA) for the financial year ending 30 June 2016.
Record tendering activities on new service, minor and major capital works across all of Valmec’s markets, underpin guidance of both a stronger performance and expanded order book during FY17.
Bullishly, the Board said it has resolved to suspend future dividend payments until further notice, electing to retain capital to assist in the current East Coast expansion activities.
Valmec’s contracts extend across a number of industries, including oil and gas maintenance services, construction and government infrastructure.
In March 2016, Valmec won a major contract worth $24 million to service Origin Energy Ltd’s (ASX:ORG) Australian Pacific LNG joint venture in Queensland.
The company had a cash balance of $1.5 million as at 31 March 2016.
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