Shares in Transfield Services Limited (ASX:TSE) have spiked in morning trade after securing a $1.22 billion government contract to work on offshore processing centres on Nauru and Manus Island.
The provider of operations, maintenance and construction services says it has received a letter of intent from the Department of Immigration and Border Protection.
The work is for garrison and welfare services at the government's offshore processing centres over a 20 month period.
Managing Director and CEO Graeme Hunt says the company has been on Nauru since the centre was established and has provided similar services at Defence facilities across New South Wales, Victoria, South Australia and Western Australia.
Transfield Services has already begun the mobilisation and transition process and a formal handover is expected to start at the beginning of March 2014.
Shares in Transfield Services spiked 19.5 per cent this morning and were trading at $0.95.
Transfield Services booked a net loss of $254.4 million in the 2013 financial year.
