Decmil shares surge on new contracts

Decmil has confirmed its involvement in the state government’s Bayswater Station upgrade as a sub-contractor while also locking in works with Queensland's Department of Transport, sending its shares up by more than 60 per cent.

The announcement comes three weeks after ACCIONA subsidiary Coleman Rail was selected as the preferred proponent for the $253 million Bayswater Station project.

The Coleman bid originally included Decmil as a joint venture partner, however the Perth-based contractor has been hit with financial troubles in recent months after a major contract with New Zealand’s prisons department was terminated.

Decmil today said it had secured a $25 million contract on the Bayswater Station project alongside Coleman Rail, with the works to include the design and construction of a new station building and platforms.

Works are expected to continue into the 2022 financial year.

Decmil will also complete roadworks on a major highway along Queensland’s coast under an $11.5 million contract with the state’s Transport and Main Roads departments.

The company will undertake works on Bruce Highway including road widening, barrier installation, zone clearing and culvert replacement and rehabilitation, beginning in May.

Decmil currently has $411 million in work, of which $254 million are contracts with state government departments and agenices.

"We see enormous potential for expanding our presence in this market in the post-COVID environment as major infrastructure projects are fast tracked,” chief executive Scott Criddle said in an ASX update.

“The win in Queensland is significant in how it builds our strong presence in the civil infrastructure space in Queensland.

“The projects also demonstrate how Decmil is able to procure work in these tough economic conditions amid the COVID-19 pandemic.”

Decmil shares were up 66 per cent late today at 22.4 cents after peaking at 24 cents.

The stock had been trading around 90 cents in December before problems emerged on the NZ contract and an east coast wind farm development.