Costain Group (LON:COSG) stock jumped 8.7% Monday after the infrastructure solutions company announced it had secured a major long-term contract with Sellafield Ltd worth up to £1 billion.
The company will serve as Sellafield’s Utilities Delivery Partner, a significant component of Sellafield’s Infrastructure Delivery Partnership (IDP). Under the agreement, Costain will refurbish and replace various utility distribution systems to support Sellafield’s decommissioning program.
The contract includes an initial nine-year term with the option to extend by an additional six years. This agreement represents a substantial portion of Sellafield’s broader IDP program, which is valued at up to £2.9 billion in total.
Costain has maintained a working relationship with Sellafield since 2005, and this latest award strengthens the company’s position in the civil nuclear energy market.
Earlier this year, Costain also secured contracts with Sizewell C and Urenco, further establishing its presence in this sector.
The UK government has emphasized that safe decommissioning of the country’s nuclear legacy is critical to creating a sustainable future and delivering economic prosperity at both local and national levels.
Costain’s role will involve delivering utilities upgrades in what the company describes as a "complex working environment," focusing on maintaining safety and quality standards throughout the project’s duration.
Source :
https://www.investing.com/news/stock-market-news/costain-stock-soars-after-securing-1bn-sellafield-utilities-contract-4283202
