Ausenco Limited (ASX: AAX) saw its share price jump as high as 35.5 cents today, currently up 29% at 29 cents, after the mining services company announced new contract wins.

Ausenco’s APAC/Africa division is finalising a number of new contracts that are expected to deliver $45 million in revenues. That represents 80% of the revenues booked by the division in 2015 according to CEO Zimi Meka.

The company also says it has won a number of other contracts, including a $17 million project to upgrade a coal handling and preparation plant (CHPP) at a NSW coal facility. Ausenco also says it has been awarded a $15 million three-year contract to provide operations and maintenance services for the CHPP at the Isaac Plains coal mine in Queensland.

Ausenco is but one of the many ASX-listed mining services companies that has seen its share price hammered over the past few years, losing more than 90% of its value since March 2013 as the resources boom ended.

Worleyparsons Limited (ASX: WOR) share price has tumbled 82%, Lycopodium Limited (ASX: LYL) has seen its share price fall 79% while the Monadelphous Limited (ASX: MND) share price is down more than 70%.

Not only have these companies been affected by less available work, but competition for work on offer is fierce, resulting in lower margins and higher levels of risk.

As I’ve mentioned before, winning a contract means virtually nothing unless the contractor can make a profit from it, and the risks of that have risen substantially. I wouldn’t be touching Ausenco shares even at these prices.

 

Don't miss your chance to "invest like a Pro"...

Motley Fool Pro -- our most comprehensive and innovative ASX investment service -- will reopen for a brief time, to accept new members. That means you've got the chance to follow along as one top investor puts $1,000,000 of The Motley Fool's own money to work...all in ASX stocks. And you're invited to watch everything that goes into our decision -- 100% FREE! We've dubbed this innovative project, Motley Fool Pro. Click here to step inside for an exclusive look around - it's FREE!

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.