Cimic Group Ltd (ASX: CIM) shares are relatively flat today despite the company announcing a new contract from the Queensland Government.
In late morning trade, the Cimic share price has trimmed 0.48% and is sitting at $18.72.
Let’s take a look at what the engineering company announced.
Cimic share price fails to respond
Investors appear to be unfazed by the company’s successful win, sending the Cimic share price slightly lower.
According to this morning’s release, Cimic subsidiary CPB Contractors has been selected by the Queensland Government to upgrade the Bruce Highway.
The construct-only contract will see the company provide a number of works between Woondum and Curra. This is considered as a priority road project and will form a part of the national highway network. Once completed, the upgrade will provide a bypass east of Gympie while reducing heavy traffic congestion.
CPB Contractors will deliver 18 kilometres of new highway roads, realignments to local roads, 19 bridges and a new interchange at Curra.
The deal is forecast to generate revenue of $289 million for CPB Contractors. Project works are expected to commence sometime this year, with completion due in mid-2024.
Management commentary
Cimic group executive chair and CEO Juan Santamaria hailed the new contract, saying:
Cimic Group is pleased to be selected to deliver this important project through CPB Contractors. We look forward to working with communities in the Sandy Creek Road to Curra area and supporting the achievement of greater safety outcomes for road users based on our experience in regional projects in Queensland.
CPB Contractors managing director Jason Spear added:
CPB Contractors successfully completed Section C of the Cooroy to Curra upgrade and will apply that local knowledge to delivering this section safely and with the least disruption possible. We are also committed to engaging with local workers and businesses to facilitate skills development, work opportunities and other community benefits.
The Cimic share price has edged around 1% lower over the past 12 months, but is heavily down 25% year to date.
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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.
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