Intermoney | ACS (ACS), through its Australian subsidiary Cimic, has been awarded a contract to refurbish a hospital in the state of New South Wales. The works will involve an investment of €450 million.
The work will begin this year and will last until 2028. It will include the refurbishment of numerous departments of the hospital, as well as the construction of new facilities, including the vertical expansion of existing ones.
Assessment: This is another contract for Cimic, which, while best known for its mining works, is also quite strong in classical civil construction. For ACS as a whole, revenues in Asia-Pacific, mainly concentrated in Australia, increased by 10% in 2023 to over €8 billion, or 22% of the total, while the backlog rose to a lesser extent, 1%, reaching €19 billion, or 26% of the Group’s total. Where Cimic really stands out is in EBITDA generation, where despite dropping 6% due to an exceptional mix in 2022, it still accounted for 32% of the total last year, ahead of North America (30%). ACS will hold its CMD next Wednesday 17, where we expect it to report on, among others, issues related to the southern market, such as an eventual reincorporation of Thiess’ mining business into the Group.
