Decmil awarded $137 million contract

Civil engineering and construction company Decmil has bounced after winning a $137 million contract from the Commonwealth government to construct a village in Papua New Guinea.

Civil engineering and construction company Decmil has bounced after winning a $137 million contract from the Commonwealth government to construct a village in Papua New Guinea. 

The stock jumped 9.6% to $1.89 at 1145 AEST following the company's announcement that its fully-owned subsidiary, Decmil Australia, will build a 600 person accomodation facility for asylum seekers in Manus Island in a contract with the Department of Immigration and Citizenship.

"It is no secret that market conditions within the resources sector have been challenging over recent months," said chief executive Scott Criddle. "We are therefore delighted that we have secured this contract as it broadens the scope of work that Decmil is involved with on a number of fronts."

Decmil received more than 90% of its revenue from the resources, oil and gas sectors in the first half of this year. Along with other mining services companies, Decmil has plunged over the past year, falling nearly 70%.

Eureka Report has explored how further earnings reductions from mining services companies are likely up to 2014-15.

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