Forrestfield-based Babylon Pump & Power has secured a three-year power generation and dewatering contract with BHP Nickel West.
Forrestfield-based Babylon Pump & Power has secured a three-year power generation and dewatering contract with BHP Nickel West.
The contract is expected to generate $9 million in revenue for the company and builds on the equipment and services it currently provides to BHP, Babylon says.
The company recently reported a 52 per cent growth in revenue for the quarter ended December 31, with cash receipts of $5.3 million.
However, it finished the quarter with cash reserves of $250,000 (down from $835,000 on the previous quarter), invoiced accounts receivable of $3.4 million, and undrawn bank debt facilities of $2.1 million.
Babylon attributed a negative operational cash flow to initiatives that supported the company’s Primepower diesel operations in Queensland and one-off corporate costs associated with its acquisition in September 2019.
Babylon issued approximately 29.6 million shares at 2.03 cents per share to purchase the Primepower business, which provides diesel maintenance to the resources sector.
“The acquisition of Primepower … has given the company a significant and growing footprint in that key resource sector market, and has strengthened the company’s diesel maintenance offering, allowing the company to take on larger engine rebuild programs,” Babylon said.
The company said it continued to grow its revenue base through its diesel maintenance and project rental services.
