The GenusPlus Group Ltd (ASX: GNP) share price is on the move today, rising 4.9% following the announcement of two contract awards.
The post Why the GenusPlus (ASX:GNP) share price is surging 7% today appeared first on The Motley Fool Australia. –
Based in Perth, GenusPlus is an end-to-end service provider for essential power and telecommunications infrastructure, and technical services. Its major clients include BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), Telstra Corporation Ltd (ASX: TLS), and Optus.
What’s driving the GenusPlus share price higher?
In this morning’s release, GenusPlus advised it has secured construction contracts within the resource and power industry.
The company’s subsidiary, ECM, will conduct a number of works on two separate projects. It estimated that the combined value of the contracts is around $20 million.
Working alongside Ahrens Group, the first deal will see ECM deliver a range of services to BHP’s South Flank Project. This includes electrical, communications, technology and fire works for non-process infrastructure. ECM will begin work on the project immediately, with an expected completion date before mid-2021.
The second contract is for the Kwinana Waste to Energy Project built by Acciona Construction Australia & John Beever. ECM will conduct electrical and instrumentation works at the site, due to be finalised by the end of the year.
Jointly developed by Phoenix Energy and Macquarie Capital, the Kwinana Waste to Energy Project will be Australia’s first thermal waste-to-energy facility. Located in Perth, the project will turn around 400,000 tonnes of household and industrial waste into clean energy. The electricity generated will be able to power roughly 50,000 households, while offsetting 400,000 tonnes of CO2 emissions per year.
What did management say?
GenusPlus managing director David Riches welcomed the deal, saying:
It’s particularly pleasing to see ECM be awarded the Kwinana Waste to Energy Project. It is a major milestone in the consolidation and re-positioning of ECM and reinforces the Genus strategy of a broader offering in its key markets.
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Motley Fool contributor Aaron Teboneras owns shares of Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.