UGL gains on contract with Hazelwood
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UGL has leapt after securing a $110 million contract to perform maintenance works on Hazelwood Power's brown-coal-fired power station in Victoria.
The engineering company's share price gained 3.65% to $7.10 in morning trade, helping it to pare heavy falls from its profit warning back in May.
Hazelwood Power awarded UGL the contract for three years, with the option to extend it to five years with two one-year options.
UGL slashed its 2012-13 earnings guidance two months ago, sending the share price sprawling by almost 30%. Net profit was cut to $90-$100 million from $150-160 million, with the company blaming a slowdown in capital investment in the resources and infrastructure segments of the business (see Roger Montgomery's Inside the mining services disaster).
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