Calibre is more diversified than Worley and not a “bums on seats” company anymore as it was 2 years ago. The acquisition of G&S Engineering in Queensland, which in my view was a clever step in further diversifying their operating capabilities and markets, means they actually have guys wearing overalls with spanners maintaining, erecting, and constructing, so it isn’t surprising they are forecasting 37% of their revenue to come from that Asset Management phase as opposed to the upfront engineering design (Asset Creation).
I expect that increasing exposure to Asset Management to continue. It will be a key differentiating factor from all the other companies that are completely leveraged to the upfront capital spend. Smart strategy if you ask me.
CGH Price at posting:
37.0¢ Sentiment: Buy Disclosure: Held
