Duratec (ASX:DUR) scores big, secures another defence contract

2 min read | June 10, 2022 04:25 PM AEST | By Aditi Sarkar

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Duratec (ASX:DUR) scores big, secures another defence contract — Image source: © Grahamsz | Megapixl.com

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Highlights

Duratec has secured a fuel infrastructure contract from the Department of Defence.

The contract award represents another positive step towards the company’s continued expansion in the energy sector.

The company has a strong orderbook and a pipeline of tangible opportunities.

Duratec Limited (ASX:DUR) has boosted its foothold in the growing energy sector with a new contract.

The Australian engineering, construction, and remediation contractor has secured a contract worth AU$18.4 million from the Department of Defence. Under the deal, DUR will undertake fuel infrastructure upgrade works at RAAF Base Richmond in New South Wales.

Multi-disciplined company Duratec operates through 15 branches to offer engineering and project delivery services. The company utilises different in-house assessment technologies, including 3D capture and modelling technology with predictive analysis tools.

Do read: ASX 200 falls 0.67% at open; financials bleed, energy stocks buck trend

The three-stage project, anticipated to start this financial year, is likely to be completed by June 2023.

Scope of work under the project (source: company update)

Strong orderbook with growth opportunities

The project supports the continued expectation of strong revenue growth in FY23. The company has an orderbook of AU$454 million and tendered works of AU$462 million within an overall AU$1.62 billion pipeline of tangible opportunities.

Commenting on the contract, Duratec’s Managing Director Phil Harcourt said, “This latest contract award represents another positive step towards Duratec’s continued expansion in the energy sector. The current award contributes to the business currently having circa $175 million of energy projects currently on Duratec’s orderbook. The energy sector represents a great opportunity for our business given Duratec’s specialist experience in the management and delivery of complex engineering projects and the remediation of our clients’ key assets”.

Since April 2022, the company has been awarded contracts worth AU$25 million by the Department of Defence. Most of the works are related to building and asset refurbishment.

The shares of Duratec traded at AU$0.330 on 10 June 2022.

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