Oil and Gas News

Valmec continues to secure contracts amid COVID-19

Valmec is proving to be resilient during COVID-19 after winning contracts in the onshore gas sector and broader resources industry.

The company’s service team announced that it was continuing to be awarded essential service and maintenance works.

For example, Valmec has secured more than $5.9 million of compression equipment overhauls and maintenance services for its onshore gas customers in Queensland and Victoria.

Valmec managing director Steve Dropulich said the latest contract awards demonstrated the strength of its exisiting relationships and ongoing ability to diversify and grow its presence.

“Together with Valmec’s current suite of services in onshore gas infrastructure, our latest awarded projects and service contract are testament to the resilience of our market offerings, even within these challenging COVID-19 economic conditions,” Dropulich said.

Following the impacts of COVID-19, Valmec advised in March that customer delays in both execution of current order book and commencement of new contractors were being experienced.

Valmec outlined that as a result it withdrew its full year 2020 guidance originally issues in September 2019.

“The increasing uncertainty surrounding both the duration and scale of the COVID-19 outbreak has led Valmec to withdraw its previous guidance to the market, predominately due to both client and supply chain delays,” Dropulich said.

However, Dropulich was confident that the company’s onshore gas and water utilities services would remain robust and ensure that it was ready to capitalise on a growing pipeline of opportunities once conditions stabilise.

In addition to securing the gas contracts, Valmec has also been awarded several new projects in Western Australia and Northern Territory totalling $23 million.

These include infrastructure contracts for Water Corporation and additional package of infrastructure works for Newmont Mining, bringing the company’s order book to $65 million.