A diversified industrial services provider Decmil Group Limited (ASX: DCG), announced on 26 April 2019, that it had been awarded an approximately $79 million worth of contract for the balance of plant works at the Yandin Wind Farm in Western Australia.
For Decmil, this contract is the second project with leading global wind energy company Vestas. This deal comes on back of the March 2019 Warradarge Wind Farm works deal. Yandin Wind Farm Pty Ltd will be developing the project.
The Decmil Group Limited’s assignment covers the designing as well as building of the electrical and civil balance of plant for the wind farm. It will also include the wind access tracks, site cabling, switch room, turbine bases, as well as the substation.
The work on the project will be starting in the mid-2019. The forward order book of Decmil after the award of the Plenty Road Stage 2 and Yandin Wind Farm contracts for FY2020 and FY2021 at present is around $750 million on a combined basis.
Recently, on 15 April 2019, the company was awarded a $105 million contract for Major Road Projects Victoria for Stage 2 of the Plenty Road Upgrade which includes the upgradation of the Plenty Road between Bush Boulevard in South Morang and Bridge Inn Road in Mernda. It also includes the addition of new lane in each direction, upgraded cycling as well as a walking path along with upgrades at the intersections which comprises of Gordons Road, Waterview Drive, Bridge Inn Road and Francesca Drive.
On 11 March 2019, the company announced that it was awarded a contract for the Main Roads Western Australia worth $46 million through its wholly owned subsidiary.
On 7 March 2019, Decmil announced that it was granted a contract for the balance of plant works which is situated at the Warradarge Wind Farm worth seventy-two million dollars. Through this first wind project, Decmil expanded its footprints in the renewable sector.
In 1H FY2019 for the period ended 31 December 2018, there was an increase in the revenue by 96% as compared to its previous corresponding period. The Group EBITDA from the continuing operation was up from $1.3 million in 1H FY2018 to $9.3 million in 1H FY2019. The company made a profit of $5.805 million. During the period, the operating cash flow remained strong. The company declared a fully franked dividend of 1 cent per share. During the period, the company had a diverse exposure to the various sector. Also, through the tier 1 client base, the company had generated good revenue. By the end of the 1HFY2019, the company had net cash and cash equivalent worth $95.447 million.
The business will continue to focus on the Infrastructure, resources as well as renewable energy in the upcoming period.
In the last six months, the shares of DCG has generated a return of 24.16%. The Shares of DCG are trading at A$0.905 on ASX (As at Mon 29 April 2019, AEST 12:25PM) down by 2.162% as compared to its previous closing price. Decmil Group holds a market capitalization of $220.44 million with 238.31 million outstanding shares and a PE ratio of 32.340x.
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