Why the Decmil (ASX:DCG) share price is surging 5% today

The Decmil (ASX: DCG) share price is up 5.26% today following an announcement regarding a contract win. Here are the details.
The post Why the Decmil (ASX:DCG) share price is surging 5% today appeared first on The Motley Fool Australia. –

asx shares in infrastructure primred for take off represented by builder preparing to run

The Decmil Group Limited (ASX: DCG) share price is surging today after the company announced a contract win.

At the time of writing, the engineering company’s shares are up 5.26%, trading at 60 cents.

What did Decmil announce?

In this morning’s release, Decmil advised that Rail Projects Victoria has awarded the company a contract to upgrade the Gippsland rail.

Decmil will join its partners through the VicConnect Consortium to undertake several works for the project. The work includes extending the Morwell crossing loop, upgrading level crossings and signalling, and adding second platforms at Bunyip, Longwarry and Morwell.

This will increase the frequency of trains running off-peak between Traralgon and Melbourne to every 40 minutes.

The VicConnect Consortium is a strategic alliance of Decmil, Arup, and Cimic subsidiary, UGL.

The entire Gippsland project is worth $300 million, with Decmil’s share of the contract around $140 million. This brings the company’s order book to $570 million thus far.

The company expects to start the major works sometime in the early part of this year and finish by mid-to-late 2022.

The initiative falls under the Victorian Government’s $4 billion Regional Railway Revival program. It aims to improve every regional passenger rail line within Victoria while creating jobs in a COVID-19 environment. This includes the Ballarat line, Shepparton corridor, Warrnambool line, Geelong line, Bendigo and Echuca line, and the North-East line.

CEO commentary

Decmil CEO Dickie Dique welcomed the deal, saying:

We’re delighted that the contract for this important project has been awarded to VicConnect.

We believe that the alliance with UGL and Arup to successfully deliver the Gippsland Line Upgrade will mark the beginning of a long and fruitful association.

This award enables Decmil to utilise the company’s existing skillsets and equipment in a new market opportunity.

About the Decmil share price

The Decmil share price has fallen heavily over the past 12 months, losing more than 60%. Year-to-date, the company’s shares are down almost 10%.

Decmil commands a market capitalisation of $73 million at the current share price, with approximately 128 million shares on issue.

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 Decmil (ASX:DCG) share price is surging 5% 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!