Decmil (ASX:DCG) has secured a $84 million bulk earthworks contract at Perdaman Industries’ Ceres Urea Plant Project in Western Australia.
The company, which has a $24.11 million market capitalisation, says it received the contract from the Saipem Clough Joint Venture (SCJV), which represents a JV between Saipem Australia and Clough Projects Australia.
Under the contract, Decmil is expected to undertake a series of bulk earthworks, including drilling and blasting, construction of a causeway, supply and installation of culverts, establishing portable water lines, and general site clearing activities.
As a result, work on site has already begunaand is scheduled for completion by July 2024.
The company notes this contract value fits within its project size ‘sweet spot’, and reinforces the shift towards larger-sized contracts with more equitable risk allocations.
Decmil also notes its orderbook (contracted and preferred) has now surpassed $550 million following the contract award.
Commenting on the contract, Decmil Chief Executive Officer Rod Heale says: “We are delighted to have been awarded this package of works by SCJV, which falls right in our project value sweet spot of between $50 million and $150 million, enabling us to maximise supply chain benefits and achieve economies of scale. Pleasingly, our orderbook is growing strongly whilst adhering to our highly selective tender strategy centred on high-quality larger-sized contracts.
“We are delighted to have been awarded this package of works by SCJV”
The capital raising we undertook gives Decmil the financial strength to efficiently deliver on our expanded orderbook and positions us very well to target further contract awards across WA, Victoria, and Queensland.”
Decmil is an ASX-listed provider of complex, multi-disciplinary project services that delivers integrated construction and engineering solutions across the infrastructure, resources, energy, and construction sectors.
Write to Adam Drought at Mining.com.au
Images: Decmil Group