Insights

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

A Queensland-first energy asset contract is making it rain for Cimic.
The post Why the Cimic (ASX:CIM) share price is moving higher today appeared first on The Motley Fool Australia. –

The Cimic Group Ltd (ASX: CIM) share price is climbing in late afternoon trade following the global engineering company’s announcement regarding a contract award.

At the time of writing, with only moments of trade left for the day, Cimic shares are swapping hands for $21.50, up 3.12%.

What did Cimic announce?

Investors are sending the Cimic share price higher after digesting the company’s latest contract win.

Cimic today announced its subsidiary, UGL, has secured a contract to connect the first pumped hydro storage project in Queensland.

UGL is a diversified engineering company in end-to-end asset solutions. The business delivers critical assets and essential services in power, water, resources, transport, defence and security, and social infrastructure.

The project will see the design, construction and installation of a 186 kilometre high voltage transmission line from Kidston to Mt Fox. In addition, UGL will build a new 275kV switching station at Mt Fox.

Cimic expects the contract to generate revenue of roughly $150 million for its wholly-owned subsidiary.

Cimic group executive chair and CEO Juan Santamaria commented:

This project will deliver a transmission line and switching station to connect the Kidston Clean Energy Hub to the national electricity grid – a vital step in the provision of power to Queenslanders and businesses. The award follows UGL’s involvement with other critical power infrastructure projects in regional areas, including Queensland’s CopperString 2.0 and South Australia’s Hill to Hill project.

UGL managing director Doug Moss went on to add:

UGL has an exciting pipeline of work in delivering high voltage power projects around Australia, providing communities with a safe and reliable power supply in some of our most remote regions. We are delighted to build on our relationship with Powerlink for this important renewable energy infrastructure project.

Cimic share price review

The last 12 months have dragged the Cimic share price down by around 17%, including a 16% drop on 10 February when the company released its full-year results. More recently, Cimic shares hit a 52-week low of $16.86 in April before climbing to their current levels.

Cimic commands a market capitalisation of roughly $6.49 billion, with approximately 311 million shares outstanding.

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

CIMIC (ASX:CIM) takeover offer sends Devine share price soaring
Why is the Cimic share price (ASX:CIM) edging lower today?
Why the Cimic share price (ASX:CIM) is rising today
Why these 5 ASX construction shares went strong today

Why the Future First Technologies (ASX:FFT) share price is surging 5%

The post Why the Cimic (ASX:CIM) share price is moving 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!