CIMIC (ASX:CIM) shares grab the spotlight today. Here’s why

January 18, 2022 06:46 PM AEDT

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ASX CIM, ASX CIM share price, CIMIC CPB Contractors — Image source: © Kantver | Megapixl.com

Highlights

CIMIC’s subsidiary CPB Contractors has won dual contracts.

CPB will deliver the next stage of the Augusta Highway Duplication for road safety.

Meanwhile, BHP also appointed CPB Contractors for an AU$100 million debottlenecking project.

The shares of ASX listed development and construction firm CIMIC Group (ASX:CIM) have been grabbing the spotlight today as the company has won a couple of contracts.

The Group announced that SA Government has chosen its engineering subsidiary CPB Contractors to deliver the next stage of the Augusta Highway Duplication for road safety. CIM also announced that minerals explorer BHP Group Limited (ASX:BHP) has appointed CPB Contractors for Western Austral based debottlenecking project.

Shares of CIMIC Group closed in red today despite getting these contracts. It was 0.29% down, closed at AU$17.32 each on Tuesday.

Augusta Highway Duplication project

This duplication will improve the network resilience of the Augusta Highway & access for high productivity vehicles while reducing travel times and improving. The Company anticipates commencing the project in FY22 and finishing in FY23.

CIMIC anticipates revenue generation of approximately AU$132 million for CPB Contractors via this project funded by the Australian and SA governments.

This project will include the Department for Transport and Infrastructure, GHD & Aurecon Australasia & will be delivered under the Port Wakefield to Port Augusta Alliance.

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On execution, this project will replicate the existing Augusta Highway with a new intersection and two-lane carriageway falling between Copper Coast Highway, Port Wakefield Highway, Augusta Highway, and the township of Lochiel.

CPB BHP partnership

CPB will deliver the piping, electrical, structural, and instrumentation package for the debottlenecking port project in the Pilbara region of Western Australia. The Company expects to generate revenue of nearly AU$100 million to CPB via this project which is expected to complete in 2023.

Bottomline

Both the projects mark a specific milestone for CIMIC, adding to its share value while building CPB Contractors’ substantial experience in delivering resources infrastructure.