CPB Contractors of CIMIC Group wins WestConnex Rozelle interchange contract with joint venture partner John Holland. In an announcement dated 14 December 2018, CIMIC Group Limited (ASX: CIM) announced that WestConnex had selected CPB Contractors to deliver the $3.9 billion infrastructure solutions for M4-M5 Link Rozelle Interchange. In return, the contract will reportedly generate $1.95 billion in revenue to the CIMIC Group.
CIMIC Group Chief Executive Officer Michael Wright stated that the CIMIC Group’s expertise in tunneling, construction, and engineering within its CPB Contractors and EIC activities are principal to the successful delivery of the last stage of Westconnex project, Rozelle Interchange.
As per the company’s information, CPB Contractors is currently engaged in the delivery of WestConnex New M5 and WestConnex M4 East along with its 50:50 joint venture partner John Holland. Moreover, WestConnex M4 Widening project has already been completed by the company.
This M4-M5 link interchange will connect the New M5 and extended M4 to the Anzac Bridge and Victoria Road. Moreover, it will also connect the Beaches Link project and the proposed Western Harbour Tunnel.
CPB Contractors Managing Director Juan Santamaria stated the award of WestConnex Rozelle Interchange underscores the company’s ability and experience in major transport projects across Australia. Mr. Santamaria added that it’s a privilege of the company to work with Roads and Maritime Services, thereby ensuring the on-time and safe delivery of this project.
Along with this project, the delivery of Sydney Metro Northwest, Sydney Metro Stage 2 and the Linewide works package are in progress by the company. The works are in support of Sydney Metro City & Southwest project.
In a separate release to ASX, the company has revealed its further plan for on-market share buyback. CIMIC Group reported that its Board had approved to undertake a further on-market share buy-back also to its ongoing buyback that will end on 28 December 2018. This additional buy-back will include the purchase of up to 10% of CIMIC’s shares through on-market trade to be taken over in 12 months commencing from 29 December 2018.
The buy-back plans of the company outline its aim to enhance shareholder returns while maintaining flexibility in balance sheets. It will also provide capital efficiency thereby widening future growth and investment opportunities. Furthermore, the construction activities relating to WestConnex’ Rozelle Interchange will start next year and conclude in 2023.
In today’s trading session, CIMIC Group has traded at higher levels. The stock price edged up 1.104% to last trade at $43.040 on 14 December 2018. Whereas, Price to earnings ratio was 18.610 x with the market capitalization of $13.8 billion. Over the past one year, the stock has witnessed a negative performance change of 14.95%.
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