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- EVZ’s (EVZ) Brockman Engineering secures contract with Viva Energy, following the letter of intent signed earlier this year
- The contract is to design and construction three 30-megalitre diesel storage tanks at Viva’s Geelong refinery
- The tanks are part of the Federal Government’s Boosting Australia’s Diesel Storage Program (BADSP), to increase Australia’s domestic fuel storage
- The total value of the project is anticipated to be around $40 million and is expected to be completed in the third quarter of the 2024 financial year
- On the market, EVZ is down 2.78 per cent and trading 17.5 cents per share
EVZ’s (EVZ) Brockman Engineering has now secured the contract with Viva Energy, following the letter of intent signed in January.
The contract is for the design and construction of three 30-megalitre diesel storage tanks at the Geelong refinery.
The three tanks are to be located within the greenfield construction area of the refinery and will form part of the Federal Government’s Boosting Australia’s Diesel Storage Program (BADSP).
The total value of the project is anticipated to be around $40 million and is expected to be completed in the third quarter of the 2024 financial year.
BADSP is in line with the Federal Government’s long-term fuel security goal to increase Australia’s domestic fuel storage to meet the country’s needs during an emergency and into the future.
Notably, it is expected that $400 million of BADSP contracts are still to be awarded in the tank construction industry before the end of the year.
“This Viva Energy contract, together with new contract wins across the business, has led to a significant increase in EVZ’s consolidated contracted backlog to over $100 million, up 190 per cent since June 30, 2021,” the company said.
“While these projects will ramp up in the second half of FY22, the significant contribution to earnings will be in FY23 and beyond.”
On the market, EVZ was down 2.78 per cent and trading at 17.5 cents per share at 2:35 pm AEDT.
