Posts Tagged ‘Southern Cross Engineering’

ASX Company News: Southern Cross Enters 5 Year Contract With Rio Tinto

Friday, September 16th, 2011

Southern Cross Electrical Engineering Ltd (SXE) is pleased to announce it has entered into a landmark framework agreement with resources company Rio Tinto’s Iron Ore business. The Agreement provides SXE with preferred contractor status for the next five years.  It covers the electrical and instrumentation package of works at Cape Lambert as part of RTIO’s 333 Programme – the  major expansion of Rio Tinto’s operations in the Pilbara, Western Australia to a capacity of 333Mt/a.  Whilst the scope of work is still to be finalised, the first package of works is expected to commence in FY12  and this Agreement already builds SXE’s FY13 order book.

SXE Managing Director, Mr Simon High said that the Agreement was a significant milestone for the  Company.  “The preferred contractor agreement that Rio Tinto has entered into with Southern Cross Electrical Engineering highlights the strength of the relationship between the two companies.  Southern Cross Electrical Engineering has been involved with Rio Tinto’s Pilbara port operations since 2005 through our  involvement in the Dampier port upgrade project. “The long term nature of this contract closely aligns the two organisations, providing Southern Cross Electrical Engineering with greater certainty in long term planning.  We will be able to devote dedicated resources to Rio Tinto to provide consistency and maintain high safety performance and quality execution across the contract period.”

www.scee.com.au

http://www.traderdealer.com.au/fundamentals/sxe

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Dividends: Southern Cross Engineering Ex Dividend On 30/8/2010

Friday, August 27th, 2010

Southern Cross Electrical Engineering (SXE) will go ex dividend on 30/8/2010. The current dividend payment is 4.5 cents and it is 100% franked. The record date is 3/9/2010 and the dividend will be paid on 5/11/2010. Based on the full year payment the dividend yield is 6.1%.

*Current Yield: 4.2% Franking: 100% DRP Discount: Not Available

Sth Crs Elect Engnr

*Yield has been calculated on the closing price on the 26/8/2010. Current yield is based on the current dividend payment only.

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Southern Cross Engineering Acquires Oceanic Industries

Tuesday, February 2nd, 2010

Southern Cross Electrical Engineering Ltd (SXE) today announced the execution of an agreement to acquire Queensland based electrical and instrumentation specialist, Oceanic Industries Pty Ltd (“Oceanic”). To date Oceanic has focussed on the coal seam gas (“CSG”) market and retains a blue-chip customer base including: QGC, Origin, Santos, Arrow and Cougar. In addition to servicing the CSG market, Oceanic undertakes electrical and instrumentation installations as a preferred contractor to the BP and Caltex refineries in Queensland.

Oceanic’s revenue for FY09 was $12.9m which delivered normalised earnings before interest, tax, depreciation and amortisation of $3.0m. The acquisition price is $12.4 million and will be funded through a combination of existing cash reserves ($3.4m), equity ($4.0m) and debt ($5.0m) with settlement expected to be finalised on 26 February 2010. The acquisition will be immediately EPS accretive.

SXE Managing Director, Mr Stephen Pearce said “SXE welcomes the team from Oceanic to the SXE Group and looks forward to substantially growing the Oceanic business. This acquisition presents a strong strategic fit with SXE’s acquisition criteria and will augment the pursuit of a range of SXE’s key growth objectives, particularly:

  • Oceanic provides an excellent platform to grow SXE’s overall presence in the Queensland market.
  • It further expands SXE’s presence in the growing energy sector.
  • Provides organic revenue growth opportunities – SXE to strengthen its footprint in the Queensland power line and mining electrical construction markets that Oceanic currently does not participate in.
  • Existing Oceanic senior management team to strengthen SXE’s skill base in the Oil and Gas sector – specialised capability in Hazardous areas.
  • Strengthens tendering capability for key Queensland based contracts.

SXE is currently finalising the results for the first half and expects to report an underlying consolidated net profit after tax result of between $4.5m and $4.8m from revenue of $38.8m.

www.scee.com.au

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Southern Cross Engineering Acquires KJ Johnson

Tuesday, August 4th, 2009

Southern Cross Electrical Engineering Limited (SXE) is pleased to announce that it has executed an agreement to acquire the overhead power line business operated by K.J. Johnson & Co Pty Ltd for $9.6m. Completion is expected to occur on 7 August 2009. The acquisition will be funded from existing the cash reserves and represents an EBIT multiple of 2.2x. As part of the transaction SXE will acquire the assets of KJJ’s including the premises in Bayswater, WA and the business name K.J. Johnson & Co. KJJ has been a major player in the overhead power line construction business in the Western Australian resource market.

SXE Managing Director, Stephen Pearce, said “the demand for overhead power line construction over the coming years from the resource sector is expected to grow. Southern Cross is already an active participant in this market and the addition of KJJ will increase our capacity to pursue these opportunities. With the strong project pipeline in front of SXE and the recent acquisitions of KJJ and Hindles, SXE’s focus over the next 12 months will be on the strong organic pipeline it has and to complete the integration of the acquired businesses.”

SXE was established in 1978 and together with its overseas group of companies, is a dedicated provider of large scale specialised electrical, control and instrumentation installation and testing services for major construction projects in Australia, and throughout the world. SCEE is a quality endorsed company, with AS/NZS ISO 9001 accreditation and has a strong track record of safety and excellence that is recognised by numerous industry awards over the years.

www.scee.com.au

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