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- Decmil Group (DCG) wins three new contracts in Western Australia, and two in Victoria, worth $137 million in total
- The new contracts take Decmil’s order book to roughly $620 million at the end of May, with $218 million of the orders awarded just this year
- Meanwhile, Decmil has again downgraded its FY22 revenue guidance, citing further delays in the delivery of its Crookwell and Ryan Corner wind farm projects
- Decmil is now expecting to pocket between $400 million and $425 million in revenue for the year, though its earnings guidance remains unchanged
- DCG shares are up 8.7 per cent to 12 cents per share at 2:10 pm AEST
Construction and engineering company Decmil Group (DCG) has won five new contracts worth a combined $137 million.
The company said three of the contracts were for Western Australia-based projects, while the other two are in Victoria.
The WA Department of Finance has awarded a $38 million contract to construct new training workshops at the Pundulmurra TAFE Campus in South Hedland and a $26 million contract to expand and upgrade Karratha Senior High School.
Decmil has also secured a $37 million contract for the final design and construction of the Florin apartments project in the Perth suburb of Jolimont, which will see 63 luxury apartments built.
Intermin CEO Vin Vassallo said the regional contracts illustrated the “increasingly strong track record” the company was building in the construction of non-process infrastructure for the WA Pilbara community.
The Victoria-based contracts include a $6.5 million deal to construct 10 crossings in the Snowy District and a $30 million contract with Main Roads Victoria for the renewal and maintenance of 11 bridge structures across Melbourne’s north and south-east.
The five new contracts take Decmil’s order book to approximately $620 million as of May 31, with $218 million of the orders awarded just this calendar year.
Meanwhile, citing further delays at its planned Ryan Corner and Crookwell wind farm projects, Decmil has again downgraded its FY22 revenue guidance, this time to between $400 million and $425 million from its previous guidance of between $425 million and $450 million.
The company said the downgrade was driven by client delays in gaining project permitting and approvals for Ryan Corner and Crookwell.
Decmil’s earnings before interest, tax, depreciation and amortisation (EBITDA) guidance remains unchanged at between -$15 million and -$10 million.
DCG shares were up 8.7 per cent to 12 cents per share at 2:10 pm AEST.
