The Cimic Group (ASX:CIM) share price is flat today despite the company announcing a new contract from the Queensland Government.
The post What’s going on with the Cimic (ASX:CIM) share price today? appeared first on The Motley Fool Australia. –
In late morning trade, the Cimic share price has trimmed 0.48% and is sitting at $18.72.
Let’s take a look at what the engineering company announced.
Cimic share price fails to respond
Investors appear to be unfazed by the company’s successful win, sending the Cimic share price slightly lower.
According to this morning’s release, Cimic subsidiary CPB Contractors has been selected by the Queensland Government to upgrade the Bruce Highway.
The construct-only contract will see the company provide a number of works between Woondum and Curra. This is considered as a priority road project and will form a part of the national highway network. Once completed, the upgrade will provide a bypass east of Gympie while reducing heavy traffic congestion.
CPB Contractors will deliver 18 kilometres of new highway roads, realignments to local roads, 19 bridges and a new interchange at Curra.
The deal is forecast to generate revenue of $289 million for CPB Contractors. Project works are expected to commence sometime this year, with completion due in mid-2024.
Cimic group executive chair and CEO Juan Santamaria hailed the new contract, saying:
Cimic Group is pleased to be selected to deliver this important project through CPB Contractors. We look forward to working with communities in the Sandy Creek Road to Curra area and supporting the achievement of greater safety outcomes for road users based on our experience in regional projects in Queensland.
CPB Contractors managing director Jason Spear added:
CPB Contractors successfully completed Section C of the Cooroy to Curra upgrade and will apply that local knowledge to delivering this section safely and with the least disruption possible. We are also committed to engaging with local workers and businesses to facilitate skills development, work opportunities and other community benefits.
The Cimic share price has edged around 1% lower over the past 12 months, but is heavily down 25% year to date.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
- ASX 200 dips, CBA launches BNPL, Fonterra reports
- Cimic (ASX:CIM) share price falls despite positive update
- Cimic (ASX:CIM) share price slides after credit rating downgrade
- Telstra (ASX:TLS) share price and others caught in Greensill insolvency
- The worst performing ASX 200 shares last week
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.