Duratec boosts order book to $550m

Wangara-based Duratec has secured a $110 million contract to build a refuelling centre at the Australian air force base at Tindal, in the Northern Territory.

The work, awarded from Lendlease Group, is part of an agreement between the Australian and US governments involving the construction of new infrastructure and facilities at existing defence sites in the NT.

The Royal Australian Air Force (RAAF) Tindal base is located near Katherine Airport and about 330 kilometres from Darwin.

Construction of the aviation refuelling facility is due to finish in August 2024.

The contract boosts Duratec's defence-related work to $230 million, with its most recent contract in that field (before today) involving upgrades to the HMAS Stirling naval base on Garden Island, as part of a joint venture with parent company Ertech.

Duratec managing director Phil Harcourt said the business, which spun out from Ertech and listed on the ASX last year, has maintained a presence in Darwin and Katherine since 2014.

“We are confident of strong growth in the defence sector based on the level of work available and our track record of delivery,” he told the market.

Mr Harcourt said Duratec was also confident of continued growth in other sectors including mining, industrial, ports, and transport.

The company has a total order book of $550 million, he said, and work opportunities worth $1.8 billion.

Other notable contract wins this year include $50 million to deliver a fuel reticulation network at Sydney's new international airport and $38 million to complete upgrades at defence sites.

Duratec's shares were up 5.4 per cent at 3:40pm AEDT on Monday to trade at 39 cents.

Also today, Subiaco-based SRG Global announced it had won two specialist facades contracts worth $20 million in total, associated with a building in Melbourne's CBD and a new hospital in Footscray.

Those contracts were awarded from Lendlease and Multiplex Constructions, respectively, and bring SRG’s total contract wins in the last four weeks to $220 million.

SRG’s shares were up 2 per cent at 3:54pm AEDT to trade at 52 cents.