CIMIC Secures $180m Worth of Contracts While Share Prices Plummet

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CIMIC Group will be completing works in the Bowen Basin, Queensland. Image Credit: www.steelguru.com

CIMIC has landed $180 million worth of contracts in Western Australia and Queensland, through subsidiary UGL. The contracts will see them providing mechanical, electrical, instrumentation and access services for the mining sector. CIMIC will be responsible for assisting with maintenance, shutdowns and sustaining capital projects.

CIMIC Group will be completing shutdown and maintenance services for multiple clients around the Bowen Basin region in Queensland. They’re also set to deliver a three-year contract for services for Alcoa at the Wagerup and Pinjarra sites in Western Australia’s Peel region.

The managing director of UGL, Jason Spears, has stated these contracts represented the company’s three decades of experience within the mining sector.

“We are excited to be leveraging our 30 years of experience in the mining industry to support key organisations in the resources sector,” Spears said.

“Our strong working partnerships with leading mining organisations support UGL’s reputation for solid performance and safe delivery of maintenance and shutdown services.”

It’s not all good news, though, as shares in CIMIC Group (AXS:CIM) have crashed 20% lower to $27.92 today.

Investors have been selling the engineering company’s shares after it provided an update on its strategic review of BIC Contracting. CIMIC revealed that it will be offloading the struggling business and exiting the Middle East. In light of this, it expects to recognise a one-off, post-tax impact of around $1.8 billion in FY 2019. The stock was trading at $44.90 a year ago.

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The CIMIC Group has been providing services to mining amongst other sectors since 1899 and is now represented in 20 countries around the world.

CIMIC group provides services, construction and private partnerships through its businesses, Thiess, Sedgman, UGL and CPB Contractors.

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