Duratec Ltd (ASX: DUR) shares are having a strong start to the day.
In morning trade, the ASX All Ord stock is charging 7% higher to $1.34.
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Why is this ASX All Ord stock leaping?
Investors have been buying the leading Australian contractor's shares following the announcement of major contract wins.
According to the release, Duratec and its 49% owned associate business, DDR Australia, have been awarded two new significant contracts across the Energy and Defence sectors.
Duratec has secured the KBSB Wharf Refurbishment Project on behalf of Woodside Energy Group Ltd (ASX: WDS), while DDR has been awarded a contract with the Department of Defence in the Northern Territory to deliver a critical portfolio of work across the territory as part of the Project Phoenix portfolio of work.
The KBSB Wharf Refurbishment is located within the Port of Dampier in Western Australia. The KBSB Project is a $21.8 million onshore services contract with Woodside that aims to extend the service life, maintain the operational efficiency, and enhance the safety and resilience of the existing wharf facility.
Pre-work is anticipated to start in November, with commencement on site scheduled for February 2025. It is expected to be complete by the end of 2025.
The DDR Defence contract award has an overall contract value of $54.7 million, which makes it the largest contract awarded to DDR to date.
The ASX All Ord stock advised that the project's key objectives within the portfolio of work includes, refurbishment of existing buildings, upgrade of engineering services at transmit and receive sites, construction of a new receive site, installation of new fibre optic link cables connecting transmit and receive sites, and decommissioning of high-frequency communications infrastructure.
Early civil works are targeted to commence in October. After which, the combined duration of the current works is anticipated to be 30 months.
'Exciting steps forward'
The ASX All Ord stock's managing director, Chris Oates, was very pleased with the news. He said:
We are delighted to be working directly with Woodside as we execute Duratec's wider business strategy to pursue diversification through investment in the Energy sector. The DDR award demonstrates that the Company continues to be a trusted Defence partner, and we look forward to supporting DDR in delivering this significant project. These are exciting steps forward for both Duratec and DDR.
Duratec's shares remain down approximately 18% since the start of the year.
