Insights

Why the Cimic (ASX:CIM) share price is in positive territory today

The engineering company’s investment partnership is paying off.
The post Why the Cimic (ASX:CIM) share price is in positive territory today appeared first on The Motley Fool Australia. –

The Cimic Group Ltd (ASX: CIM) share price is climbing during late morning trade.

This follows the engineering company’s announcement that its 50%-owned subsidiary Ventia has been awarded a government contract.

At the time of writing, Cimic shares are fetching $19.88, up 0.51%.

Details of the contract

In today’s statement, Cimic advised that the South Australian government has selected Ventia for a facilities management contract.

The Across Government Facilities Management Arrangement (AGFMA) is focused on the maintenance, management and improvement of government-owned facilities. This includes building assets that underpin essential community services such as schools, hospitals, and police stations.

Ventia is expecting to receive roughly $300 million annual revenue from the deal. The AGFMA will run over an initial period of 5 years and 7 months, with potentially three 2-year extensions.

Transition activities for the contract are scheduled to begin in July with operations commencing in December this year.

Ventia group CEO Dean Banks touched on the award, saying:

South Australians rely on the essential services delivered at more than 3,500 Government locations across the state and Ventia is pleased to support the government of South Australia with the delivery of facility management services to the community, 7 days a week, 365 days a year.

Ventia’s group executive of defence and social infrastructure Derek Osborn added:

Ventia is looking forward to partnering with local small to medium businesses to help us deliver these services, keeping investment and employment in South Australia.

Ventia is also passionate about providing apprenticeships in various trades, as well as ensuring our employment opportunities focus on delivering a diverse and inclusive workforce.

More on Ventia and the Cimic share price

Ventia is a 50/50 investment partnership between Cimic and funds managed by affiliates of Apollo Global Management.

Ventia is a leading essential and infrastructure services provider in Australia and New Zealand, operating across 400 locations.

The subsidiary operates in a variety of sectors including transport, telecommunications, utilities, defence, water, energy, resources, and social infrastructure.

The Cimic share price has lost more than 15% over the last 12 months and is down 18% in 2021.

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

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

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

Motley Fool contributor Aaron Teboneras has no position 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.

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!