Civmec Secures Major \$100 Million Shiploader Project, Strengthening Market Position
PERTH/SINGAPORE, 13 NOVEMBER 2024: Civmec Limited (“Civmec” or the “Group”, ASX:CVL, SGX:P9D) has announced a significant project award for the design and construction of a new major shiploader. This project, valued at approximately A\$90-100 million, marks a substantial milestone for the company and is expected to bolster its market position in the balance machines sector.
Key Points:
- Project Award: Civmec has been awarded the design and construction works for a new major shiploader. This project includes design, fabrication, preassembly, shipping, and installation activities.
- Project Timeline: The shiploader is expected to be handed over in 2028.
- Local Employment: The project will create over 100 highly specialized jobs, providing significant opportunities for local employment and subcontracting.
- Strategic Advancement: This award represents a key advancement for Civmec’s balance machine division and enhances its reputation as a supplier of high-quality balance machines for Tier 1 clients across Australia.
Important Information for Shareholders:
Shareholders should note that this major project award is expected to have a positive impact on Civmec’s market position and may influence share values. The company’s Chief Executive Officer, Mr. Patrick Tallon, emphasized the significance of this award, which follows a recent contract for a new bridge reclaimer from Alcoa.
Civmec is anticipating an increase in demand for new, replacement, and major refurbishment of balance machines across Australia over the next decade. This outlook positions Civmec favorably for future growth in this sector.
FY25 Outlook:
While Civmec’s tendering activities remain at historically high levels across all business segments, the timing of key project awards has been delayed from H1 FY25 to H2 FY25. This delay is expected to result in lower levels of activity during Q3 FY25 and potentially Q4 FY25. Despite this, Civmec’s order book remains robust, exceeding A\$800 million, demonstrating steady replenishment during H1 FY25.
This announcement has been authorized for release to the ASX and SGX by the Board of Directors.
About Civmec Limited: Civmec is a multi-disciplinary construction and engineering services provider to various sectors including Energy, Resources, Infrastructure, and Marine & Defence. The company is headquartered in Henderson, Western Australia, with regional offices in Newcastle, Gladstone, and Port Hedland. Civmec is listed on the ASX (ASX:CVL) and SGX (SGX:P9D).
For more information, please visit www.civmec.com.au.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a financial advisor before making any investment decisions.
