Synertec Corporation Ltd’s (ASX:SOP) acquisition by SML Corporation Limited in 2017 resulted in a complete shift in the company’s operations.
The company was transformed from a gold and base metals exploration company to a multidisciplined engineering consulting business.
Since then the group has been successful in being awarded high profile contracts and its areas of expertise.
Synertec enters 2018 debt free with cash of $7.5 million.
Contract success in Australia and overseas
In releasing its half-year result, management highlighted that the company’s prospects for 2018 were enhanced by its strong work in hand.
Contracts awarded in the last six months included two with North Caspian Operating Company N.V. Kazakhstan (NCOC).
This involved the design and supply of instrumentation, electrical and mechanical equipment for a project in the Kashagan field, one of the world’s largest offshore petroleum developments.
The company also received a letter of intent from Koppers Carbon Materials & Chemicals for the Newcastle Terminal stage III expansion mechanical works.
Opportunities may stem from Metro contract
In January, Synertec was awarded a $1.8 million contract to replace the control and monitoring system of the Melbourne Underground Rail Loop (MURL) fire and life system.
The contract involves the design, supply, installation, testing, commissioning and placing into service a new system to improve passenger safety on the MURL.
Metro Trains Melbourne is the operator of the network, and it has over 200 six-carriage trains running on a network of 16 lines with circa 200 stations along an 800-kilometre track.
Consequently, there could be scope for further work, and Synertec’s expertise in high priority essential engineering such as security systems may work in its favour.