08/12/2020 - 12:00

Valmec, Centurion win $125m in contracts

08/12/2020 - 12:00


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Valmec has won a major asset services contract, while Centurion has secured mine site works in Queensland and Decmil has been named preferred contractor for a Victorian rail project.

Centurion has won a multi-year logistics contract with New Century Resources. Photo: Centurion

Valmec has won a major asset services contract worth $100 million, while fellow Perth business Centurion has secured mine site works in Queensland and Decmil Group has been named preferred contractor for a Victorian rail project.

Valmec has been tasked with providing compression facility, and wellsite mechanical and electrical services to Origin Energy’s Spring Gully gas facilities in Queensland.

The agreement is for an initial five-year term, with two one-year extension options.

It comes after Valmec announced a major business growth plan that involved expanding its asset services division to account for half of its order book, which now stands at $193 million.

Valmec’s shares were up 10 per cent on the news at 12:10pm AEDT, reaching 26 cents – its highest share price since March.

As part of its growth plan, Valmec intends to provide a one-stop shop within its asset services division to deliver design, construction and maintenance services to the energy, resources and infrastructure sectors.

Valmec says the energy sector is entering a major maintenance cycle, which will bolster the company’s asset services division.

“This agreement with Origin highlights our capabilities as a full-lifecycle provider, underpinning our asset services strategy update,” Valmec managing director Steve Dropulich said.

The company has an existing working relationship with Sydney-headquartered Origin, having been contracted in 2016 to provide maintenance and construction services to Origin’s Australia Pacific LNG project in Queensland.

Meanwhile, Centurion has won a new multi-year logistics contract worth about $25 million with New Century Resources subsidiary Century Mining, which operates a zinc mine.

The scope of work, to be carried out at Century’s Karumba Port facilities, includes customers’ clearance, wharf collections of import commodities, warehousing, road transport, and airfreight and courier services.

Centurion will begin the works around February.

Meanwhile, Decmil has been named preferred tenderer for the Victorian government’s $530 million Gippsland rail project, as part of a joint venture with CIMIC subsidiary UGL and UK-headquartered Arup.

If contracted, the VicConnect consortium will duplicate track, extend a crossing loop, upgrade level crossings and signalling, and build additional platforms at three stations.

Project work is expected to complete in late 2022.

Decmil chief executive Dickie Dique said the business was pursuing an alliance contracting model.

“The successful bid for these works opens up a new buoyant market for Decmil,” he said.

“We expect this significant government investment in infrastructure will continue in order to stimulate the COVID-19-impacted economy.

“As a result, we have entered into a partnership with UGL to enhance our ability to capture further opportunities across a broad range of markets in the thriving infrastructure sector.”

Decmil expects the final Gippsland rail contract to be awarded in the coming months.

Its shares were up 3 per cent at 1:40pm AEDT, to trade at 69 cents.


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