Site Group International Ltd (ASX: SIT) has confirmed an accelerated intake of new trainees for an apprenticeship program at Saudi Arabia’s Maharat Construction Training Centre (MCTC) in partnership with Saudi Aramco, the world’s largest company by revenue as at 29 April 2023.

The 100-strong June cohort was described as ‘unscheduled’ due to the surge in demand for high-quality training within Saudi Arabia’s construction industry, spurred by the Kingdom of Saudi Arabia (KSA) government’s ‘Vision 2030’ initiative. The company expects a further intake of 250 candidates in October.

Site provides training services for the oil and gas, construction, mining, hospitality and industrial sectors and has serviced global blue chip clients such as ExxonMobil, GE, Shell and OceanaGold.

COVID disruptions caused Site’s revenues to plummet from more than $31 million in FY19 to around $7 million in FY22, resulting in a >95% drop in the share price to a market cap of less than $4 million in March 2023.

The company was recently recapitalised by existing and new investors including the likes of EGP Capital, Lucerne Investment Partners and Altor Capital’s Alpha Fund and has previously attracted investments from former Macquarie CEO Tony Berg (Armada Trading Pty Ltd).

With a total of 650 trainees to be studying concurrently at MCTC from June, Site estimates the program will generate annual revenue of ~US$3 million that strengthens Site’s ongoing campaign to return to pre-COVID operating levels.

When operating at capacity, Site expects revenues of US$17 million (2025) across all its KSA projects which include training programs in crane operation and rigging, scaffolding, heavy equipment operation, construction safety, fire and safety.

In addition to its operations in KSA, Site holds a 38.4% interest in a 30-hectare leasehold in Clark, the Philippines, which is currently attracting major investment in a drive to diversify the country’s infrastructure away from Manila.

The land was independently valued at around $26 million in 2022 based on its current low-use zoning, however the company is working on increasing this value through a rezoning for commercial development or sale.

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