Decmil is busy making deals as it pivots towards Australia’s infrastructure boom
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Australian infrastructure activity has picked up the pace in recent years, supported by increased funding from federal and state governments.
And in that environment, engineering and construction firm Decmil Group (ASX: DCG) is staying busy.
The company announced this morning that it’s signed a $46m deal with the WA government, for a road-building project in the Perth suburb of Caversham.
Shares in the company were up just over 1 per cent in morning trade at 87 cents per share, down from a 12-month high of $1.26 reached in April last year.
As part of the deal, Decmil said it will design and construct a dual carriageway along Reid Highway, as well as the Arthur Street Overpass.
Today’s announcement marks the third of its kind for Decmil within the last week.
The company said last Thursday that it had a $72m agreement at the Warradarge Wind Farm in WA, the company’s first wind project.
Decmil will design and construct supporting infrastructure for the sight, including wind turbine bases and access roads.
And last Tuesday the company announced that its a front-runner for the large-scale Mordialloc Freeway project in Victoria, as part of a joint venture with McConnell Dowell.
An early-works contract for $25m has already been awarded for the initital phase, with the Victorian government set to finalise approval for the major works by the end of this year.
In its recent half-year results, Decmil said revenue for the six months to December was up 97 per cent to $273.4m.
The company says its pivot to infrastructure leaves it on track for full-year revenues of around $650m.
That’s up from an average of around $300m from 2016 to 2018, as demand cooled off in the wake of WA’s mining and energy boom.
Decmil’s full-year revenues peaked in the 2015 financial year at $667m.