Australia's GR Engineering falls on revenue hit from nickel project suspension

GR Engineering Services

12/07/2024 02:59

** Shares of contracting company GR Engineering Services
 GNG.AX  fall as much as 10.2% to A$1.895, their lowest since
May 25, 2023 
    ** Co expects revenue from West Musgrave project in Western
Australia will be up to A$80 mln ($54.05 mln) lower than
expected for FY 2025
    ** Says this is due to BHP Group's decision to temporarily
suspend the nickel project amid oversupply concerns
    ** Adds there will be no impact to co's revenue and EBITDA
guidance for year ended June 2024
    ** Last year, GNG had entered contracts with OZ Minerals,
which was later acquired by BHP, for construction works of the
West Musgrave Project
    ** As of last close, stock down about 5% this year


($1 = 1.4802 Australian dollars)

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))