Singapore’s Big Loser for the Week: Civmec Ltd

Civmec Ltd (SGX: P9D) has fallen by 2.2% for the week, closing at S$0.66 on Friday. In comparison, the Straits Times Index (SGX: ^STI), had increased by 0.4% during the same period.

This makes Civmec Ltd one of the bigger losers in the Singapore share market for the week.

Headquartered in Australia, Civmec is an “integrated, multi-disciplinary construction and engineering services provider to the resource, oil and gas and infrastructure sectors”. The company got itself listed   in our shores in April 2012 at a price of S$0.40 per share.

On 4 March 2015, the firm announced that it is going to have a part to play in building the biggest sporting arena and entertainment venue in Perth, Australia. Civmec had won a contract from Brookfield Multiplex Engineering and Infrastructure Pty Ltd for an undisclosed amount to fabricate and erect steelworks for the new Perth Stadium.

The contract had commenced on the announcement date and is slated for completion in around 18 months’ time.

Mr. Patrick Tallon, Chief Executive Officer of Civmec, commented on the latest contract win:

“This award exemplifies Civmec’s position as a leading heavy engineering player offering a diverse range of services to the growing Australian public infrastructure sector. As a leading end-to-end solutions provider, we continue to pursue and tender for strategic projects in the public infrastructure space as part of enhancing long-term shareholder value.”

Prior to the award of the Perth Stadium contract, Civmec was chosen to fabricate the arches for a large pedestrian access bridge at Perth’s waterfront. The firm’s order book currently stands at nearly S$237 million.

Civmec is going at 8 times its historical earnings.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.