ASX 200 jumps, Worley rises, Cimic up

The ASX 200 continues to rise, with continued investor confidence.

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The S&P/ASX 200 Index (ASX: XJO) went up just over 1% today to 7,218 points.

Here are some of the highlights today:

Worley Ltd (ASX: WOR)

The Worley share price was one of the best performers in the ASX 200 today, rising by 6.5% after releasing an investor presentation.

Worley outlined to the market how it is deeply involved in the world’s decarbonisation efforts with projects spread across the world in wind power, solar power, hydrogen, distributed energy, electric vehicles and storage, geothermal, hydro and ocean power, renewable fuels and waste to energy, nuclear, carbon capture, electrification, energy and grid transformation projects.

For example, Worley said it is involved in the largest commercial green hydrogen production facility in the world. It has been awarded an early engineering services contract to support the development of a new 200MW electrolysis-based hydrogen plant. The facility, the first of its project, will be located in Rotterdam in the Netherlands.

Cimic Group Ltd (ASX: CIM)

The Cimic share price went up almost 3% today after announcing another contract win.

It said that its UGL subsidiary has secured a contract for the design, construction and installation of a high voltage transmission line from Kidston to Mt Fox in Queensland and a new 275kV switching station located at Mt Fox.

The UGL contract will generate approximately $150 million of revenue. UGL is currently performing early works and mobilisation for the contract with its client, Powerlink, in support of the Kidston Clean Energy Hub in Queensland.

UGL managing director Doug Moss said:

UGL has an exciting pipeline of work in delivering high voltage power projects around Australia, providing communities with a safe and reliable power supply in some of our most remote regions. We are delighted to build on our relationship with Powerlink for this important renewable energy infrastructure project.

Codan Limited (ASX: CDA)

The Codan share price fell over 1% after announcing the sale of its Minetec business to Caterpillar for approximately US$14 million and a volume-based earn-out over the next five years.

After completion, Codan will provide manufacturing services to Caterpillar for up to five years, to ensure a successful transition and continuous supply to Caterpillar customers.

Minetec provides high-precision tracking, productivity and safety solutions for underground hard-rock mines. The technology enables real-time monitoring and control of mining operations, allowing miners to visualise the whole mine in order to optimise productivity and enhance safety.

Codan said that under its ownership, Mientec has not scaled to a level that supports the ongoing investment required for a technology-based business. Management said whilst the technology is world class, the business would be better suited to be under the ownership of another company, like Caterpillar.

This will lead to a one-off gain before tax of around AU$3 million. The money will be used to pay down debt after the recently-announced acquisitions.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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