Infrastructure

Wagners wins West Sydney airport contract valued at $140m

Tue 31 May 22, 1:10pm (AEST)
Trucks - Excavator machinery at construction site, sunset in background

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Key Points

  • Wagners to provide precast cement tunnel segments for 9.8km of twin metro rail tunnels comprising over 67,000 segments
  • Wagners expects to see $140m received over twenty months with project running into 2024
  • Tunnelling works are to begin in early 2023; first payments expected late 2022

Wagners (ASX:WGN) has today announced its receipt of a supply contract from a major construction contractor to supply precast concrete tunnel segments to the Sydney Metro to Western Sydney Airport infrastructure link project. 

Manufacturing for the project is to commence later this year at Wagners' Brisbane precasting facility and the company expects a significant contribution to earnings for FY2023 and FY2024. 

The company's share price has risen 15% in late lunch trades to $1.37. 

(Source: Wagners) An aerial shot of Wagners' concrete batch plant in QLD
(Source: Wagners) An aerial shot of Wagners' concrete batch plant in QLD

Over 67,000 tunnel segments to be manufactured

The scope of the contract sees Wagners providing the project with over 67,000 tunnel segments with tunnelling to begin in early 2023. 

The new airport service will connect St. Mary's with the new Western Sydney International airport, a project overseen by the CPB Contractors Ghella JV. 

All in all, the works encompass the construction of 9.8 kilometres of twin metro rail tunnels, for which Wagners will provide the concrete tunnel components.

All segments will be manufactured within Australia with the final being sent off in early 2024.

Contract ultimately valued at $140m

Wagners expects to receive $140m over 20 months from the period with payments starting later this year. 

Wagners has previously executed works on three tunnel projects in Queensland and demonstrated to CPBG its acumen in handling the Western Sydney Airport project. 

In the company’s half year report for the 2022 financial year, Wagners noted revenue of $172m and net profit of $4.7m driven by improved sales performance in Australia. 

Debt stands at $60.6m. 

The shape of Wagners' three month charts versus the materials index
The shape of Wagners' three month charts versus the materials index

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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