CIMIC Group subsidiary UGL has extended its maintenance contract with Sydney Trains by three years in an agreement that could pocket the company an extra $353 million in revenue.
The new five-year deal, which replaces a two-year extension announced in January, will provide heavy maintenance, component overhaul and engineering and depot-related support for a portion of the city’s metro rail fleet.
CIMIC said on Wednesday the new contract will generate approximately $630 million in revenue for UGL, replacing $277 million in revenue.
“We are very pleased to be extending our long-standing relationship with Sydney Trains and Transport for NSW, building on a partnership that has spanned several decades,” CIMIC chief executive Michael Wright said.
The maintenance services will be delivered through UGL Unipart, a 70:30 joint venture between UGL and Unipart Rail UK.
Cimic shares were worth $45.87 before trade on Wednesday and have gained 5.67 per cent so far in 2019.