Decmil Group (ASX:DCG) has secured the Delivery Phase works for the Offshore Processing Centre on Manus, Papua New Guinea, that has increased the total contract value by $106 million to $253 million.
The contract with the Department of Immigration and Border Protection is a continuation of the original contract awarded in December 2013 that was originally valued at $147 million.
Decmil had in July won a $26 million contract for the design, supply, installation and commissioning of the Cape Lambert Port B Non Process Infrastructure for Rio Tinto’s (ASX:RIO) port expansion.
These contracts represent a good start to the 2015 financial year and follows on its successful FY2014 where it reported a 17% increase in revenue to $617.7 million, a 10% increase in EBITDA to $78.2 million and earnings per share of $0.295.
The company has $59.3 million in cash and no core senior debt.
The original scope of the Offshore Processing Centre project included accommodation facilities, central dining and recreational facilities, operational and logistics facilities and supporting engineering facilities and services.
Through the Planning Phase, aspects of the project scope changed to better support the outcomes sought by the Australian Government.
The scope of works, currently valued at $253 million, includes additional operational facilities such as warehousing and storage, upgrade and repairs to roads, repairs to the existing water and sewerage treatment plants, improvements to public roads, and the inclusion of surgery capability in the medical facility.
Shares in Decmil are likely to trade higher today.
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