GNG’s revenue of $182m was as expected, although margins were pressured by a lack of new project work and competition. The potential conversion of pipeline opportunities, of which there are a number, should help margin in coming years. Our forecasts assume better performance from 2H20, although timing remains a key uncertainty. Nevertheless, we expect EBITDA to climb back to higher levels over the next couple of years. GNG has a significant amount of study work on hand, and we look beyond near term uncertainty in maintaining our $1.05 valuation and BUY call.
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