Image Sourced ShutterStock
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Downer EDI has landed a $600 million contract with AusNet Services to service the energy giant’s electricity distribution network in Victoria
  • Under the five-year contract expands Downer’s services to cover all of AusNet’s electricity distribution network
  • Downer will also provide 24/7 emergency response for all of AusNet’s electrical distribution assets.
  • Downer shares last traded 0.44 per cent up from the company’s previous close, while AusNet shares settled to trade at the exact same price as yesterday’s close

Downer EDI has landed a $600 million contract with AusNet to service the energy giant’s electricity distribution network in Victoria.

The contract is locked in for five years, with the option to be extended for an additional six years.

Downer already providers operational and maintenance services to AusNet in the central Victorian region, but the new contract expands these services to cover the northern and eastern regions as well.

Downer CEO Grant Fenn said the company was happy to be expanding its partnership with AusNet, who Downer has already been partnered with for 19 years.

“This contract demonstrates Downer’s ability to deliver and service our customers’ assets to help them provide cost-effective, safe and reliable energy for our communities,” Grant said.

Along with the operations, maintenance, and capital works for AusNet, Downer will also provide 24/7 emergency response for all of AusNet’s electrical distribution assets.

Downer is an integrated services company focussed on helping customers design, build, and sustain assets, infrastructure, and facilities. Downer has operations in Australia, New Zealand, South America, Southern Africa, and the Asia-Pacific region.

AusNet owns and operates Victoria’s entire electricity transmission network, and also focusses on electricity and gas distribution across the state. AusNet currently holds $13 billion worth of gas network assets.

Both Downer and AusNet are ASX200 companies.

Both companies have also seen share prices fluctuate throughout the day, gaining and then losing frequently.

As at 4:10pm AEST, Downer shares last traded 0.44 per cent up from the company’s previous close, for $6.91 each. AusNet shares settled to trade at the exact same price as yesterday’s close, now worth $1.80 per share.

DOW by the numbers
More From The Market Herald
Chalice Mining (ASX:CHN) - Managing Director, Alex Dorsch

" Chalice Mining (ASX:CHN) continues to progress Gonneville resource

Drilling at Chalice Mining's (ASX:CHN) Julimar project in WA continues to extend the Gonneville resource, while…

" Charter Hall Group (ASX:CHC) gobbles up BP, Arnott’s assets in $1.25 billion slam

Charter Hall (ASX:CHC) has bought itself a $1.25 billion Christmas present in the form of 225…

" Charter Hall (ASX:CHC) partnership buys six Bunnings stores

Charter Hall (ASX:CHC) wholesaler partner, LWHP, has purchased six Bunnings Warehouse assets for $353 million.