Cimic Group Ltd (ASX:CIM) shareholders welcomed news today that the construction and engineering firm was awarded a $237 million contract by the South Australian and Federal Governments.
Who is Cimic Group?
Cimic Group was formerly called Leighton Holdings. The company changed its name shortly after some bribery scandals emerged in the news and it was acquired by its majority shareholder, Spanish firm Grupo ACS.
On a more positive note, Cimic is today a major international construction and mining contractor with brands like UGL, CPB Contractors, Thiess, Broad and Sedgman under its banner.
Cimic Group wins SA transport contract
In a media release today, Cimic said its CPB Contractors business had been selected to deliver three projects for regional South Australia as part of the Port Wakefield to Port Augusta Regional Projects Alliance.
The projects include highway works and a bridge duplication in Port Augusta.
“These three upgrades will provide improved road safety, reduced traffic congestion and greater network resilience for the communities of regional South Australia,” Cimic Group CEO Juan Santamaria said.
“CPB Contractors will draw on its proven capability to efficiently deliver these major road projects through an alliance style contract, consistent with our strategy of effectively managing risk.”
The works are expected to commence this year and be completed in 2022.
What Now?
Cimic recently delivered its annual report to investors showing a 0.2% rise in full-year revenue to $14.7 billion. In 2020 the company said it has its eye on $160 billion of works and an additional $380 billion expected to come to market in 2021 and beyond.
Cimic Group shares were last seen trading at $23.84, giving the company a market capitalisation more than $5 billion.
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