GR flags profit, earnings upgrade

Investors welcomed news that GR Engineering Services had upgraded its profit and earnings forecasts for the 2016 financial year.

The Perth-based engineering contractor said it expected profit before tax to be in a range between $24.5 million and $25.5 million for FY16, on top of an implied maximum of $21 million when the company released its half-year results in February.

GR also said earnings before interest, tax, depreciation and amortisation would be between $25.5 million and $26.5 million, up from its earlier forecast of up to $21.6 million.

It maintained its revenue guidance of about $254 million.

GR shares were up 14 per cent, or 20 cents, to $1.62 each at 10:30am.

The company has won a number of contracts in the past six months, including most recently a $36 million contract to design and build a processing facility in Queensland for Auctus Chillagoe.

It also received about $140 million worth of contracts in May, with one for work on the Origin Energy-operated Australia Pacific LNG project in Queensland, and the other for the operation and maintenance of a floating production storage and offloading facility in the Timor Sea for Northern Oil & Gas Australia.