Feb 10, 2021

CIMIC highlights strong project pipeline

CIMIC highlights strong project pipeline

Queensland projects including ASMTI work, a Lake Vermont coal contract and the Mackay Northern Access Upgrade have helped CIMIC build a $30 billion-plus portfolio of work in hand.

The major construction company has also pointed to a strong pipeline of opportunities, with more than $500 billion of tenders relevant to its business to be bid or awarded in 2021 and beyond.

The Copper String 2.0 transmission project spanning from the coast to North-West Queensland is among those it is throwing its hat in the ring for.

And its CPB Contractors arm is part of the Capstone consortium in the running to construct the Toowoomba-Beaudesert section of the Inland Rail in Queensland.

COVID-19 hits annual revenue

CIMIC Group today announced a net profit after tax of $620 million for the 12 months to December.

Revenue for the year hit $11.4 billion, with COVID-19 having interrupted the award of new projects and causing a slowdown across domestic and overseas activities, the company said.

The year was also marked by CIMIC’s sale to Elliott of a 50 percent equity interest in Thiess, the world’s largest mining services provider.

“While the pandemic had a bearing on revenues and the award of new projects during 2020, we have a strong level of work in hand of $30.1 billion, providing approximately two years’ worth of work and a positive outlook for the future,” CIMIC Group executive chairman and chief executive officer Juan Santamaria said.

“The Thiess transaction has delivered additional capital to pursue future growth opportunities and enables us to retain a strategic 50 per cent interest in the mining business, whilst also strengthening our balance sheet and reducing debt.”

Major project wins in the past year included:

– A $2.5 billion contract extension for Thiess to continue to provide mining services at the Lake Vermont coal mine in Central Queensland.

– CPB Contractors’ selection by the Department of Defence to deliver the Australia-Singapore Military Training Initiative (ASMTI) facilities at Greenvale in North Queensland.

– UGL’s appointment, as part of an alliance, as preferred tenderer by Rail Projects Victoria to improve rail services for the Gippsland Line.

Mr Santamaria said the significant role of infrastructure in the economic recovery from the pandemic supported a positive outlook for CIMIC’s activities in 2021.

“Governments are pursuing stimulus packages in construction
and services, including PPP (public-private partnership) projects, while the mining market is proving resilient,” he said.