The Cimic Group Ltd (ASX: CIM) share price is up 1.05% to $45.06 today, following the announcement that UGL, the engineering company acquired by Cimic Group in late 2016, won the contracts to build and maintain a 127MW solar farm in Tailem Bend, South Australia, over a five-year period.
The contracts were awarded by Singapore-based Equis Energy, an independent power producer with a strong presence in Asia and Australia. Equis plans to develop a second solar farm at Tailem Bend later this year.
The project will boost UGL revenue by $170 million and consolidate its position in the renewable energy sector, with four other solar projects under construction in Western Australia, Queensland, New South Wales and Victoria. Construction at Tailem Bend will commence in early 2018, with the plant expected to generate power by 2019.
Cimic Group issued a positive FY 2017 report last week, and announced a 21% final dividend lift to $0.75 per share, fully franked, to be paid on July 4.
