The Cimic share price has slipped 0.95% this morning despite the company announcing a new contract win with Rail Projects Victoria.
The post Cimic (ASX:CIM) share price flat despite another contract win appeared first on The Motley Fool Australia. –
Cimic Group Ltd (ASX: CIM) shares are flat today despite the company announcing a new contract win with Rail Projects Victoria for a yet-to-be disclosed amount.
At the time of writing, the Cimic share price is up just 0.07% at $26.58.
The scope of work
Cimic says Rail Projects Victoria has appointed its business, UGL, as preferred tenderer to improve rail services for Victoria’s Gippsland Line.
The value of the contract has not been disclosed, and the company says revenue to UGL will be confirmed at contract execution.
The scope of the project includes second platforms and station amenity works at three stations along the line and reactivating the second platform at Traralgon. Civic will also perform track duplication, level crossing upgrades for safety and reliability, as well as improvements to signaling, train control systems and freight passing loops.
Cimic Group chief executive said this was not the first time that Cimic has worked on a project for Rail Projects Victoria.
“We are pleased to build on our relationship with Rail Projects Victoria to deliver improved rail services on the Gippsland Line, benefitting the growing communities of Gippsland, and creating jobs in the region.”
Other recent contract wins
Today’s contract is the second major contract that the engineering company has announced within the space of a week.
Last Friday, the company announced several new contract wins for UGL worth $112 million. Those contracts were in the utilities sector, involving the state governments and electricity network operator Transgrid, to build electricity transmission lines.
Cimic was also recently selected by the Australian Government’s Department of Defence to deliver the development phase of the Australia-Singapore Military Training Initiative (ASMTI) facilities project in North Queensland. That project is worth $800 million in revenue.
How did the Cimic share price perform in 2020?
The Cimic share price has lost around 20% of its value in 2020. This comes alongside the cyclical downturn in general construction activities globally as a result of the COVID-19 pandemic.
Cimic shares dropped to $11.87 in March, their 52-week low, before recovering to today’s level. Cimic currently commands a market capitalisation of $8.3 billion.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.