CIMIC Group Ltd (ASX: CIM) has gained an infrastructure contract from QGC Pty Ltd in the Surat Basin, Queensland worth $250 million.
CIMIC Group will be delivering gas infrastructure as part of the project and is expected to generate revenue of approximately $250 million.
According to the Managing Director Roman Garrido: ”Our integrated project management, engineering and construction capabilities provide clients with a single interface for all civil, structural, mechanical, piping, instrumentation and electrical work for delivering oil and gas facilities.”
CIMIC Group Chairman and CEO Marcelino Fernandez Verdes said the project will make a ‘major contribution to the Queensland economy and growth of the LNG industry in Australia.’ The project is expected to begin in late 2015 and to be concluded in 18 months.
In the past month, CIMIC Group landed a gas gathering contract with Asia Pacific LNG, a contract to design and construct Sydney’s new M5 motorway. The company also signed a deal with the Victorian Government to design and construct Melbourne’s level crossing removals.
Last week CIMIC announced 25% growth in NPAT for the first nine months of the year. The company announced that it received new work of $11.34 billion and has reported to participate in tenders of approximately $10 billion by the year end. The guidance has been confirmed and remains between $420 million to $520 million.
The CEO Mr. Verdes commented “CIMIC Group’s net profit continued to show an improving trend during the third quarter of 2015 reflecting the on-going transformation of the Group.” He also showed his confidence on delivering a sustainable increase in margins and keep the company’s focus on cash collections to improve its working capital position.
The CIMIC Group stock is trading at $28.00 as at 10:00 AM (AEDT). It reached a fresh 52 week high last week and is currently up 22.27% for the year.