The Cimic Group Ltd (ASX: CIM) share price is edging higher today following a positive announcement. We take a look at what the company said.
The post Here’s why the Cimic (ASX:CIM) share price is pushing higher today appeared first on The Motley Fool Australia. –
During mid-afternoon trade, the global engineering company’s shares are fetching for $18.08, up 0.7%.
Details of the contract awards
Investors appear pleased with the company’s latest news, breaking the gradual decline of Cimic shares over the last few months.
In a statement to the ASX, Cimic’s construction company, Leighton Asia, and wholly-owned subsidiary of CPB Contractors, Broad Construction (Broad) have secured $100 million in project wins.
This extends their market presence in Singapore and Western Australia, respectively, generating revenue for the company.
The following projects are listed as follows:
- Awarded by Singapore’s Land Transportation Authority to Leighton Asia, in joint venture with Bintai Kindenko, will see the replacement of electrical services and systems for the existing Central Expressway and Fort Canning Road Tunnels. It is expected the project will commence this month, and be completed by Q3 2024.
- Awarded by the West Australian Government to Broad for the expansion of the Casuarina maximum security prison, located south of Perth. Works include the construction of a high-security unit, two mainstream accommodation units, as well as support and industries buildings. The project has already begun and is scheduled to be finished sometime in 2022.
Leighton Asia managing director Pedro Vicente commented on the new deal, saying:
We are pleased to secure another contract with our client, the Land Transportation Authority. The award of this contract demonstrates Leighton Asia’s diverse engineering capabilities and ability to leverage CIMIC Group’s experience to grow our business in the M&E sector.
CPB Contractors managing director Jason Spears touched Broad’s award, adding:
Broad has industry leading experience in delivering essential community facilities like schools, hospitals and prisons. Our team will work closely with the Department of Justice, and particularly WA Corrective Services, to ensure that this important project is delivered safely while also maximising local employment opportunities.
About the Cimic share price
The Cimic share price has been hit hard since reporting its full-year result in the middle of February. The company’s shares dived from the $26 mark to hover around the $20 price point. This reflects a fall of more than 20% in a short amount of time.
Based on the current share price, Cimic commands a market capitalisation of roughly $5.6 billion, with 311 million shares outstanding.
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Motley Fool contributor Aaron Teboneras 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.