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Duratec (ASX:DUR) share price rockets 14% on new contract

Another contract win in its defence portfolio sees investors chasing Duratec shares this morning.
The post Duratec (ASX:DUR) share price rockets 14% on new contract appeared first on The Motley Fool Australia. –

The Duratec Ltd (ASX: DUR) share price has jumped out of the starting blocks in early trade, landing firmly in the green.

Duratec shares are on the move in this morning’s session as the company announced it had secured another key contract win in its defence portfolio.

Let’s investigate futher.

A quick recap on Duratec

Duratec is an investment holding company that has exposure to defence, mining, industrial, and building (among other segments) in its portfolio.

The company has a wide service offering, spanning from asset protection to spatial integration.

As a result of its efforts thus far, Duratec has a market capitalisation of $102 million at the time of writing.

What did Duratec announce?

In a positive for the Duratec share price, the company advised it has been awarded “a $53 million design and construction wharf project”, under its joint venture with Ertech Group.

In addition, Durtec confirmed “initial works” have started, while the project is “due for completion in September 2023”.

Duratec has now secured $32 million in defence contracts in recent months. Consequently, the company’s “defence-focussed order book” now comes in at $110 million, whereas its total order book now sits at $230 million.

Duratec’s exposure to defence “continues to be a strategic focus” for the company. For instance, it now has a “presence” on 37 of 75 defence bases delivering “whole-of-life projects” in Australia.

Moreover, the company now has $200 million in defence tenders “submitted and awaiting decision”, with a further $1 billion in “tangible opportunities”.

As a result of this fundamental momentum, Duratec is “confident of ongoing growth” in each of its key sectors, another positive for the Duratec share price.

Further, with $635 million in “tendered works” and an additional $2.2 billion in “pipeline opportunities” visible, this may not an unreasonable expectation.

Investors seem to have enjoyed the announcement and are pushing up the Duratec share price today.

Duratec shares are now exchanging hands at 49 cents apiece, a 13.95% jump from yesterday’s closing price.

Duratec share price snapshot

The Duratec share price has faced headwinds this year to date, posting a loss of 17% since January 1. It has also fallen 19% in the past 12 months.

These results have lagged the S&P/ASX 200 Index (ASX: XJO)’s return of around 25% over the past year.

Despite the downward pressure this year, Duratec shares are up 18% in the last month, and have climbed 14% into the green over the last week.

The post Duratec (ASX:DUR) share price rockets 14% on new contract appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

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