Major Project Win and Strong Outlook: Civmec’s \$100M Shiploader Contract

Civmec Limited (ASX:CVL, SGX:P9D) has announced a significant milestone in their business activities with the award of a major shiploader project, valued between A\$90-100 million. This project includes design, fabrication, preassembly, shipping, and installation activities, showcasing Civmec’s comprehensive in-house capabilities.

The engineering and design work will be handled by Civmec’s in-house team, followed by manufacturing and preassembly at their Henderson facilities. The completed machine will then be transported by heavy lift vessel to its final destination, a Western Australian port, where it will be installed by Civmec. The shiploader is scheduled for handover in 2028.

This project is expected to create over 100 highly specialised jobs, reinforcing Civmec’s commitment to local employment and subcontracting opportunities. Civmec’s CEO, Mr. Patrick Tallon, expressed delight at securing the prestigious project, highlighting it as a significant advancement for their balance machine division.

Mr. Tallon emphasized, “This award represents a significant advancement of our balance machine division, following the recent award from Alcoa for a new bridge reclaimer. It establishes Civmec as a key Original Equipment Manufacturer supplier of high-quality balance machines for Tier 1 clients around Australia.”

Civmec continues to expand its footprint in the balance machines sector, including stackers, reclaimers, and shiploaders. They anticipate the need for at least 30-40 new, replacement, and major refurbishments of balance machines across Australia over the next 10 years.

Despite high levels of tendering activities across all business segments, Civmec expects lower levels of activity during Q3 and potentially Q4 of FY25 due to delays in key project awards. However, their order book remains robust, exceeding A\$800 million, indicating steady replenishment during H1 FY25.

This announcement could influence shareholder sentiment and potentially affect share values, reflecting Civmec’s strong market position and future growth prospects.

Disclaimer: This article is based on the latest updates from Civmec Limited as of November 13, 2024. It aims to provide a comprehensive overview of the company’s recent achievements and future outlook. Investors are advised to conduct their own research before making any investment decisions.

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