Perth FX Just to add a couple of comments, as it is fair to say you have misrepresented Calibre in a number of respects. They appear quite different to other MSs and have evolved significantly over the last 3 years through acquisitions, and particularly and in the 18 months they listed: - importanly they don't carry the project / balance sheet risk that the likes of FGE and MAH etc did. That's the beauty of the low risk EPCM model. - Having said that they are most certinaly not purely EPCM as you seem to keep repeating ad nauseum. Their business profile has changed significantly into a more diversified model, particularly with the acqusition of G&S Engineering in Movember 2012 (Asset Management, construction and maintenance), and they have greatly expanded the range of engagement models they apply with clients beyond pure EPCM. - In this respect, if you look at their FY2013 results presentation, you will see they are expecting approx 60% of FY2014 revenue to come from: Maintenance (presumably the G&S business); Construction (the G&S work on BMA's Hay Point and Caval Ridge projects), Consulting (their urban and civil business, Brown Consulting and Calibre Global's consulting activities), and some EPC work, with the remaining 40% via the EPCM model. - the whole market can see MS is a very challening sector, but presumably there will be winners and losers in this respect - for example, no doubt there will be a feeding frenzy out of the FGE debacle with new opportunities emerging. Rio and others are still spending enormous amounts on expansion activity (albeit more brownfields focussed now than greenfields). The market will be keen to pick the winners given the low multiples many MSs are trading at. Good returns can still be had for those who can adapt and maintain strong cash flows and balance sheets, while delivering value to clients. I am not picking the winners yet, but I am sure the coming reporting season will help in this respect.
CGH Price at posting:
46.0¢ Sentiment: None Disclosure: Not Held
