SRJ Technologies Group Plc (ASX: SRJ) announced its UAE subsidiary Air Control Entech (ACE) has been awarded a three-year, US$4.4 million (A$6.1 million) call-off contract.
The agreement is for robotic leak detection and emissions inspection services for a government-owned upstream oil and gas operator located in the UAE.
This contract follows a successful proof-of-concept campaign at the client’s onshore gas facility.
The agreement also includes an option for the client to extend by a further two years at its discretion.
Services will be mobilised upon written request, with fees based on agreed tariff rates.
Strategic Middle East Expansion
This significant contract aligns with SRJ Technologies’ strategic goal of expanding its footprint in the Middle East.
The company has focused on establishing UAE entities, such as ACE UAE and acquiring First Avenue General Contracting Sole Proprietorship LLC, to gain direct access to National Oil Companies (NOCs) in the region.
These efforts are part of a broader plan to build an embedded asset integrity maintenance model anchored by Middle East NOC access.
Recent Contract Wins and Recurring Revenue
The new UAE contract adds to a series of recent successes for SRJ Technologies in the region.
Earlier, ACE signed a multi-year Service Level Agreement with Divetech Marine Engineering Services (within AD Ports Group) for class-approved robotic inspection services across the AD Ports Group’s UAE maritime network.
That agreement has an indicative revenue potential of up to US$1.3 million (approximately A$1.8 million) over an 18-month ramp, with services expected to commence in late H1/early H2 FY26.
SRJ is actively pursuing more recurring revenue streams through these embedded asset integrity services.
Financial and Operational Context
SRJ Technologies’ 2025 annual report highlighted a 2025 loss and revenue decline, largely due to Middle East timing delays and reduced legacy activity in Asia.
The company reported an 11% decrease in revenue to £1,835,115 and an increased EBITDA loss of £2,260,000.
To counter these challenges, SRJ completed a group restructure that delivered approximately £500,000 in annualised cost savings.
Furthermore, a capital raise of approximately A$2.54 million via an 8-for-9 ANREO was completed in FY25, alongside a A$356.6k placement, to strengthen liquidity.
Outlook and Risks
The new UAE contract represents a positive step for SRJ Technologies’ Middle East expansion and recurring revenue strategy.
However, ongoing concerns about the timing of cash receipts and the indicative nature of contract values, coupled with past financial performance and going concern uncertainties, remain key investor watchpoints.