Decmil Group Limited (ASX: DCG) is in the business of construction and engineering of large scale infrastructure and renewable energy projects, which was founded in 1978. The company is known for delivering complex, large-scale civil engineering and construction projects. The company’s goal is to maximise returns from their operations to deliver value to their shareholders, clients and other stakeholders.
On 11th March 2019, the company announced that it has been awarded a $46 million contract for Main Roads Western Australia through a wholly owned subsidiary. This contract work includes design and construction of the Arthur Street Overpass and design and construction of a dual carriageway along Reid Highway from Altone Road to West Swan Road in the Perth suburb of Caversham.
The commencement of the project will be done on an immediate basis and is expected to be completed in 2020. Currently, the company is working on several other projects including $86 million Drysdale Bypass project and the $60 million Warncoort project.
On 7th March 2019, the company reported that its substantial shareholder Paradice Investment Management Pty Ltd had increased its shareholding to 18.21 million (7.65% voting power) from 15.44 million earlier (8.980% voting power), effective 5 March’19.
On this same date, the company announced that it had received a contract for balance of plant works at the Warradarge Wind Farm for $72 million with global wind energy organisation Vestas. The project is situated 200kms South of Geraldton and will be developed and funded by Bright Energy Investments. The company will be constructing and designing 55km of access tracks, civil and electrical balance of plant for the 51-turbine wind farm etc. and is expected to be completed by September 2020.
On 5th March, another substantial shareholder of the company, Commonwealth Bank of Australia reduced its shareholding in the company from 25.72 million (10.80% voting power) to 22.62 million (9.50% voting power), effective 4 March’19.
On this same date, the company announced that it had received a tender from Major Road Projects Victoria in a joint venture with McConnell Dowel. Initially, it has been awarded contract valued at $25 million for detailed design works to commence immediately and major works are expected to be awarded after the completion of the Environmental Planning Approval process which is currently underway and is expected to be completed by the end of 2019. This Mordialloc Freeway project will create one continuous freeway from Frankston to Clayton which will link the Mornington Peninsula Freeway to the Dingley Bypass.
Scott Criddle, Managing Director, said they are extremely pleased that they are preferably appointed for this large-scale infrastructure project and are looking forward to delivering the works.
The stock price traded lower on ASX by 1.163% at A$0.850 on 11 March’19 compared to the previous closing of A$0.860. In the last one month, the stock has given an impressive return of 8.1%. The stock has been declining from the past one year resulting in the negative return of 28% whereas due to a stable reversal from the bottom levels, the last six months return is standing at 6.8%.
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