The Duratec Ltd (ASX: DUR) share price is slipping on Friday despite the release of a new contract win before market open.
At the time of writing, shares are down 0.83% to $2.39.
The move comes even as the company continues to outperform the broader market, with Duratec shares up 22% in 2026. By comparison, the S&P/ASX All Ords Index (ASX: XAO) is down 4% since the start of the year.
Here's what the company announced.
Image source: Getty Images
Multi-million PNG contract secured
According to the release, Duratec PNG Limited has been awarded a contract with Lihir Gold Limited. Lihir Gold is a subsidiary of Newmont Corp (ASX: NEM).
The contract relates to operations at the Lihir site in Papua New Guinea.
Part of the scope is linked to Phase 1 of the Lihir Nearshore Soil Barrier project. The initial contract is expected to generate multi-million-dollar revenue over a 12-month period, with a value of around $45 million, subject to scope and performance.
There is also potential for additional scope to be awarded over time, depending on project requirements and approvals.
The work includes integrated services to support well plug and abandonment activities. Mobilisation is expected to begin immediately.
Builds exposure in key growth market
The contract marks another step in Duratec's expansion in the energy and resources services sector.
The company said the award supports its strategy of working more with existing clients while also expanding into new regions.
The Lihir project shows Duratec can deliver complex work using its own teams alongside established subcontractors.
The contract is on standard commercial terms and is not subject to any material conditions precedent, allowing work to begin without delay.
Why the share price is easing
Despite the positive update, the share price reaction has been limited, suggesting some of the contract momentum may already be reflected.
Duratec shares have rallied strongly this year, rising around 22% in 2026 and more than 40% over the past 12 months.
Against that backdrop, smaller contract wins are less likely to move the share price unless they lead to a clear lift in earnings expectations.
Attention may also be on the contract duration, with the initial term set at 12 months and revenue dependent on scope.
Foolish Takeaway
Duratec's latest contract supports its position in the energy and resources services space and adds to its exposure in Papua New Guinea.
The roughly $45 million agreement provides near-term revenue visibility, with potential for further work as the project progresses.
However, after a strong run in 2026, the market response has been limited. This suggests investors are looking for larger or longer-duration contracts to drive further share price gains.
