Insights

Why the Cimic (ASX:CIM) share price is edging higher today

The Cimic Group Ltd (ASX: CIM) share price is edging slightly higher today following the announcement of a contract award. Here’s the details.
The post Why the Cimic (ASX:CIM) share price is edging higher today appeared first on The Motley Fool Australia. –

The Cimic Group Ltd (ASX: CIM) share price is edging slightly higher today following a contract award announcement.

In mid-morning trade, the engineering company’s shares are up 0.04% to $21.30.

What’s driving the Cimic share price today?

In its release, Cimic advised its subsidiaries, UGL and CPB Contractors, have entered into an early contractor involvement (ECI) contract with CuString Pty Ltd for works related to the Copperstring 2.0 project.

Based in Townsville, Queensland, CuString is a privately-owned company that delivers energy infrastructure needs to North Queensland.

The Copperstring 2.0 project is a 1,100km high-voltage transmission line that will stretch across Townsville to communities in north-west Queensland. The project is expected to have a capital expenditure of around $1.5 billion and employ 750 people during the construction phase. Once completed, electricity will be supplied to existing customers and open new opportunities for industrial facilities and agriculture projects.

Under the proposed agreement, UGL and CPB Contractors will conduct several services to begin the assessment stage. This includes scoping, designing, site investigations, pricing and finalising the engineering, procurement and construction contract for substations and high-voltage transmission lines. The deal’s initial phase is estimated to be worth $7 million.

Once the ECI stage is completed along with relevant approvals and financing, the project will move to the delivery phase. Cimic noted that both of its companies are preferred contractors to follow through with works. If selected, UGL and CPB Contractors will start construction services over 3 years. The works are projected to generate $1.7 billion in revenue.

The delivery phase involves the design, construction and commissioning of four new substations, two substation extensions, and the 1,100km high-voltage transmission line.

What did management say?

Cimic group executive chair and CEO Juan Santamaria welcomed the agreement, saying:

UGL and CPB Contractors have proven experience in the delivery of critical infrastructure. We are pleased to support the delivery of this vital transmission line and will look to maximise the economic benefits and employment opportunities that this project can bring to regional communities in North and North West Queensland.

UGL managing director Doug Moss added:

UGL has solid experience delivering high voltage power projects in some of Australia’s remote regions, including the HV connection that feeds Prominent Hill in South Australia.

We are delighted to be working with CuString Pty Ltd, the proponent of the CopperString project, to deliver power infrastructure that will support the growth of this globally significant resources region and export supply chain.

The Cimic share price is down more than 10% from the last 12-month period.

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.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

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.

The post Why the Cimic (ASX:CIM) share price is edging higher today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!