04/09/2008 - 10:27

Paladio wins $80m Pluto contract

04/09/2008 - 10:27

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Paladio Group Ltd's order book has been given a significant boost today after its subsidiary, Decmil Australia Pty Ltd, won an $80 million contract by Woodside Burrup Pty Ltd for the Pluto liquefied natural gas project in Western Australia.

Paladio wins $80m Pluto contract

Paladio Group Ltd's order book has been given a significant boost today after its subsidiary, Decmil Australia Pty Ltd, won an $80 million contract by Woodside Burrup Pty Ltd for the Pluto liquefied natural gas project in Western Australia.

The Belmont-based Paladio said $40 million of the two-year contract could be included into the 2009 financial year report, subject to timing.

Under the contract, Decmil will construct site accommodation for the project starting this month.

First gas from the $12 billion project is expected in late 2010.

The Pluto project contract follows several new projects won by Decmil in the Pilbara region, including a $22 million contract to construct a new camp for BHP Billiton's Rapid Growth Project 5.

Paladio said the contracts, together with others within the group, bring the total work at hand to over $200 million, underpinning the group's performance for the 2009 financial year.

Last month the company reported a smaller net profit for fiscal 2008 of $55,000, down from the previous year's $4 million, due to project delays and costs related to refocusing the group on a regional basis.

 

Below is the full announcement:

 

Paladio Group Limited (ASX: PDO) subsidiary, Decmil Australia Pty Ltd, has been awarded a two year $80 million miscellaneous civil works contract by Woodside Burrup Pty Ltd at the Pluto LNG Project. Subject to project timing, up to $40m of the contract could relate to the 2008/09 financial year.

Expected to produce first gas in late 2010, the $12 billion Pluto LNG Project is set to become Australia's second biggest resources project.

Decmil Australia, which provides civil construction and engineering services, has been commissioned primarily to build site accommodation for the Pluto Project personnel on the Burrup Peninsula, near Karratha in Western Australia commencing September 2008.

Paladio Chief Executive Officer, Mr Victor Kuss, said "the Woodside Pluto contract was a significant milestone for the Company. It reflects the considerable investment by the Company over the last 12 months in developing a sound platform to undertake projects of this size and puts Decmil in good position for the future to attract these type of larger contracts as we continue to grow the business".

Decmil has developed a strong infrastructure network and created good working relationships with clients to support major projects, onshore, in Western Australia and North Australian region. This remote area experience has been built over the last 30 years.

The Woodside contract comes on top of several new contracts recently won by Decmil in the Pilbara region, including: $21.6 million contract for BHP Billiton's new camp at its Rapid Growth Project 5 Yandi, and a $37 million contract for Finucane Island Buildings Complex in Port Hedland for BHP Billiton.

These contracts, together with others within the Paladio Group of Companies, bring the total work in hand, as at July 2008, to in excess $200 million which will help underpin the group's performance in the 2008/09 financial year. For the first time, the order book not only covers a significant proportion of the current financial but is being built for next year with $55 million of the order book relating to the 2009/10 year (dependent on project timing).

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