An Australian engineering firm has been awarded the contract for upgrades and maintenance on one of Victoria’s prime power plants.

UGL Limited has secured a $110 million contract for the Hazelwood power plant. The deal covers a three year span during which UGL will be responsible for outage planning and major outage maintenance works on boilers, turbines and generators and the plant east of Melbourne. Hazelwood is a brown coal fired power station that currently supplies up to 25 per cent of Victoria’s energy needs.

The engineering company's share price gained 3.65% to $7.10 on the stock market late last week, helping it to offset heavy falls from a profit warning in May. There are reportedly two options for an extension on the contract, which would see it run for five years.