Calibre wins $140m Qld contract

Calibre Group has been awarded a $140 million contract to upgrade the Hay Point coal export terminal in Queensland for the BHP Billiton Mitsubishi Alliance.

The engineering group said its subsidiary G&S Engineering Services would carry out the work on the terminal, near Mackay.

Calibre acquired G&S in October last year after having listed on the ASX two months earlier.

A Calibre spokesperson said the rationale behind the acquisition was to increase the company’s exposure to ongoing maintenance work and operational and capital sustaining expenditure by clients.

The contract increases Calibre's forward order book by $140 million to $1.44 billion and is in line with the company's revised full year 2013 guidance announced on April 12.

Works are expected to begin before June, with the contract to be complete during financial year 2015.

At 1:30PM, WST, Calibre shares were up 2.5 per cent, trading at 40.5 cents. 

The share price is not close, however, to the $1.21 it was trading at on April 10.

Calibre's shares plunged after the engineering group revised its profit guidance, saying it expected a fall of $16.7 million on the previous year.

Calibre said projects had been delayed, investments in mines and rail infrastructure locally and overseas had been deferred, and key markets were volatile, leading to the writedowns.