The Cimic Group Ltd (ASX: CIM) share price is climbing in late afternoon trade following the global engineering company's announcement regarding a contract award.
At the time of writing, with only moments of trade left for the day, Cimic shares are swapping hands for $21.50, up 3.12%.
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What did Cimic announce?
Investors are sending the Cimic share price higher after digesting the company's latest contract win.
Cimic today announced its subsidiary, UGL, has secured a contract to connect the first pumped hydro storage project in Queensland.
UGL is a diversified engineering company in end-to-end asset solutions. The business delivers critical assets and essential services in power, water, resources, transport, defence and security, and social infrastructure.
The project will see the design, construction and installation of a 186 kilometre high voltage transmission line from Kidston to Mt Fox. In addition, UGL will build a new 275kV switching station at Mt Fox.
Cimic expects the contract to generate revenue of roughly $150 million for its wholly-owned subsidiary.
Cimic group executive chair and CEO Juan Santamaria commented:
This project will deliver a transmission line and switching station to connect the Kidston Clean Energy Hub to the national electricity grid – a vital step in the provision of power to Queenslanders and businesses. The award follows UGL's involvement with other critical power infrastructure projects in regional areas, including Queensland's CopperString 2.0 and South Australia's Hill to Hill project.
UGL managing director Doug Moss went on to add:
UGL has an exciting pipeline of work in delivering high voltage power projects around Australia, providing communities with a safe and reliable power supply in some of our most remote regions. We are delighted to build on our relationship with Powerlink for this important renewable energy infrastructure project.
Cimic share price review
The last 12 months have dragged the Cimic share price down by around 17%, including a 16% drop on 10 February when the company released its full-year results. More recently, Cimic shares hit a 52-week low of $16.86 in April before climbing to their current levels.
Cimic commands a market capitalisation of roughly $6.49 billion, with approximately 311 million shares outstanding.
