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Duratec (ASX:DUR) secures $53m contract, boosts confidence for FY22 growth

Industrial
ASX:DUR      MCAP $251.6M
13 August 2021 13:30 (AEST)
Duratec (ASX:DUR) - Managing Director, Phil Harcourt

Source: Duratec

Duratec and JV partner Ertech have secured a $53 million contract to design and construct a wharf.

Duratec, an Australian engineering, construction and remediation contractor, along with civil construction business Ertech Group, formed a joint venture partnership (DEJV) in 2019.

Initial works are already under way for this most recent contract and the project is due for completion in September 2023.

In regards to the partnership, Duratec’s Managing Director Phil Harcourt said both companies had individual strengths in large-scale maritime construction, but the JV could leverage corporate and cultural synergies for clients.

Separately, Duratec announced it has been awarded $32 million in defence works projects over recent months, which it said has boosted its current defence-focused order book to $110 million, bringing the total order book to $230 million.

Defence projects continue to be a focus for Duratec, with $200 million in defence tenders submitted and awaiting decisions and $1 billion in “tangible” opportunities.

With the amount of work available, Phil Harcourt said the company is confident of strong growth in the defence sector in financial year 22.

“In addition, we are confident of ongoing growth in our other key sectors including mining and industrial, buildings and facades, ports and transport, with total tendered works of $635 million across the group and a $2.2 billion pipeline of opportunities in our sights.”

Shares were trading 11.6 per cent higher at 48 cents at 2:06pm AEST.

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