CIMIC Group Wins Sydney Metro Works From NSW Government

CIMIC Group Companies (ASX:CIM), CPB Contractors and UGL have been awarded by New South Wales Government for $1.376 billion Sydney Metro works.

Under the terms of contracts, joint venture partners CPB Contractors and UGL will deliver the Line-wide works package for Australia’s biggest public transport project, Sydney Metro City & Southwest. This new works at Sydney Metro are reported to commence this year and are slated to conclude in 2024, providing a revenue of $1.376 billion to the joint venture.

CIMIC Group Chief Executive Officer Michael Wright stated that the wining of the project underscores the CIMIC Group’s integrated rail solutions and combines the proven expertise in rail-sector within CIMIC Group’s asset solutions provider UGL and its construction company CPB Contractors.

This joint venture includes the delivery of end-to-end result, covering construction, design and commissioning of the project. Broadly, the works include the expansion of current Sydney Metro Trains Facility at Rouse Hill, building of tunnel ventilation, mechanical and electrical systems, design, construction and commissioning of rail systems in the twin 15km Chatswood to Sydenham Sydney Metro tunnels and delivery of new Sydney Metro Trains Facility South at Marrickville.

System contractor in the transportation sector, UGL is currently engaged into the work of tunnel fit-outs for the Sydney Metro Northwest and Epping to Chatswood projects.

UGL Managing Director Jason Spears stated that Sydney Metro City and Southwest Line-Wide Works package outline the building of strong relationship between UGL and Sydney Metro. He further said the involvement of company’s in-house teams throughout the designing, construction and commissioning phase will optimise operational performance at the project.

As per the company’s information, CPB Contractors are currently delivering contracts on Sydney Metro Northwest, Sydney Metro City & Southwest, WestConnex M4E and New M5, reflecting the rapidly growing portfolio of rail projects across Australia.

CPB Contractors Managing Director Juan Santamaria said the project with the revenue of $1.376 billion further builds to the CPB Contractors’ rail projects portfolio including the Metro Tunnel in Melbourne. He added the company stays committed to safely deliver this essential infrastructure for the people of New South Wales.

Moreover, CIMIC Group along with its member company UGL, CPB Contractors, EIC Activities and Pacific Partnerships are playing principal role in the development, operations and delivery of Sydney Metro project.

CIMIC group’s 2018 NPAT is expected to be within the range of $720 million to $780 million as per the company’s announcement made in Fiscal 2017 results. The guidance represents an increase of 3% to 11% on 2017 reported NPAT of $702.1 million.

Despite securing new contract from NSW Government, CIMIC Group Limited (ASX:CIM) witnessed bearish market in today’s trade. At the time of writing, 21 November 2018 (2:04 PM AEST), CIMIC Group’s share price has gone down by 0.614% to stand at $42.060. Currently, the stock is trading at a PE of 18.500 x with market capitalization of $13.72 billion. The historical performance of the stock has also shown the downward trends as the stock has fallen 15.66% over the past 12-months.

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