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Duratec (ASX:DUR) secures $110m defence subcontract

ASX News, Industrial
ASX:DUR      MCAP $381.8M
13 December 2021 12:24 (AEDT)
Duratec (ASX:DUR) - Managing Director, Phil Harcourt

Source: Duratec

Duratec (DUR) has secured a $110 million defence subcontract, aligned with its defence growth strategy. 

The company will deliver the new aviation refuelling facility at RAAF base Tindal in the Northern Territory, building on its energy infrastructure capability in defence.  

The project is being delivered as part of defence’s RAAF base Tindal redevelopment stage six and US posture initiatives (USFPI) RAAF base Tindal airfield works.

Duratec said this project, along with other minor awards, has boosted the current defence-focussed order book to $230 million and the company’s total order book to $425 million and $1.8 billion in tangible opportunities.

The energy project follows the November announcement of a $50 million aviation fuel reticulation network project at the new Western Sydney international airport.

Duratec managing director, Phil Harcourt, said the specialist fuel infrastructure team secured the project through their skills to deliver it in a remote location.

“Having a highly capable local presence in both Darwin and Katherine since 2014 is a significant advantage enabling us to provide multiple alternative personnel for key roles and the ability to mitigate the impacts of COVID-19 on workforce availability,” he said.

Additionally, Mr Harcourt stated that defence continues to be a key strategic focus for the company, which currently has a presence in 52 defence bases in Australia.

“We are confident of strong growth in the defence sector based on the level of work available and our track record of delivery,” he said.

“In addition, we are confident of ongoing growth in our other key sectors, including Mining & Industrial, Buildings & Facades, Ports, and Transport with total tendered works of $550 million across the group within a $1.8 billion pipeline of opportunities in our sights.”

Directly funded by the Commonwealth, the project is due for completion in August 2024.

Duratec shares were up 4.05 per cent, to trade at 38.5 cents at 12:23 pm AEDT.

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