Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

CIMIC Group Shares Bounce On Major Contract Wins

CIMIC Group Ltd (ASX:CIM) shares bounced today after it announced CPB Contractors, part of the Cimic Group, won two major contracts commencing in 2019.

CIMIC Group Ltd (ASX: CIM) shares bounced today after it announced CPB Contractors, part of the CIMIC Group, won two major contracts commencing in 2019.

CIMIC is a major international construction and mining contractor with brands like UGL, CPB Contractors, Thiess and Sedgman under its banner. It’s a well-known company on the ASX with a history that dates back to 1899.

Contract Wins-Fall

The first contract announced was one awarded by the NSW Government to deliver The Northern Road Upgrade Stage 6. CPB are currently delivering Stage 5 of the upgrade and, with joint venture partners, delivering Stage 1 of the Parramatta Light Rail projects.

Revenue to CPB from this contract will be approximately $119 million. CIMIC Group CEO Michael Wright highlighted the track record of CPB on past projects.

“Through CPB Contractors, CIMIC Group has a long track record of delivering high-quality roads and transport projects. We’ll continue to work closely with the Australian and State governments to provide important infrastructure for future generations”, he said.

He added, “Our current work on Stage 5 of The Northern Road upgrade will help facilitate the smooth and safe provision of this important project and provide the local community with certainty of delivery.”

Construction is expected to begin in the middle of this year and will be completed in 2021.

The second contract announced was awarded by Otakaro Ltd to deliver the Christchurch Metro Sports Facility. The facility will be the largest aquatic and indoor recreation and community venue in New Zealand.

Revenue to CPB from this contract is expected to be approximately NZ$221 million.

Mr Wright said of this project, “CPB Contractors has taken a leading role delivering critical infrastructure for the Christchurch community, including the Christchurch Hospital Acute Services Building and Te Pae the Christchurch convention and exhibition centre, both currently in delivery.”

CPB Contractors Managing Director Juan Santamaria said, “CPB Contractors is strongly focused on providing opportunities for local businesses and working closely with Otakaro Ltd to safely deliver this important new facility.”

Construction is scheduled to begin in May 2019 for completion late 2021. CIMIC Group shares are up 1.5% at the time of writing. While CIMIC shares might sound like a reliable investment it’s important to keep in mind that construction is very tough industry and CIMIC is majority-owned by the foreign entity, which may not have the best alignment with smaller shareholders, like us.

Therefore, before buying CIMIC shares you may be better off considering the companies in the free report below…

[ls_content_block id=”14945″ para=”paragraphs”]

Disclaimer: At the time of writing, Max does not own shares in any of the companies mentioned.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content