InfraStrata awarded a two-vessel contract worth £1.6m
said it has won a contract award from ‘a globally recognised ferry company’ which will see the unnamed client have two of its ferries repaired at Harland & Wolff (Belfast).
The Company, which is focused on strategic infrastructure projects and physical asset lifecycle management, said the two-vessel deal is valued at approximately £1.60 million.
Infrastrata’s repair works on both vessels, which are being carried out at the group’s repair dock at its Harland & Wolff (Belfast) site, are expected to be completed by mid-June 2021.
John Wood, Chief Executive of Infrastrata, commented: "We are now seeing the positive effects of the UK's successful vaccination programme emerging in that clients and vessel owners are discussing and committing to larger spend profiles on their vessels.”
He said, “Going into the third and fourth quarters of this calendar year, should the vaccination programme continue to be successful and the economy continue its recovery, we should be in a position to win further contracts of larger value given that we have time and again demonstrated our technical and commercial capabilities to the satisfaction of vessel owners.”
Last month, the Company hailed its results for the six-month period ended 31 January 2021 as it reported a ten-fold revenue increase from 2020 as it continues to make “huge progress” in its quest to reach a level of steady revenues and to eventually achieve profitability.
The Group secured revenues of over £5m during the period, a five-fold increase from its annual results of 31 July 2020 and a ten-fold increase from the half-year results of 31 January 2020, while it said momentum continues to build going into this year’s second half.
In particular, InfraStrata said it has built “a sizable, weighted pipeline of opportunities across our five markets” since the Company acquired Harland & Wolff (Belfast) in December 2019.
InfraStrata believes it can achieve a dominant position at two distinct ends of the shipyard market; the lower end of the market at less than 119m of dock length (with Appledore) and the upper end of the market, requiring dock lengths of 300+m (with Belfast).
“Our strategy is aligned with Government policy to promote growth, increase employment and kick-start a post-COVID recovery. With our investments in people and systems across the Group, we are better placed than ever before to bid for, and win, larger long-term contracts that we intend will provide significant returns for shareholders,” said CFO, Arun Raman.
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Last month, InfraStrata also secured a contract worth over £26m for the fabrication of 8 wind turbine generator jackets for Saipem, the single largest contract awarded it has won to date.
The Group noted that this recent contract award “validates our business strategy and provides the ideal platform to secure similar, if not larger, fabrication contracts across all our sites."
The Group said it believes that it has “a firm set of foundations” that it is ready to capitalise on and that it expects to see clients increasing their contract spend as the world opens up, ‘leading to larger contract values and enabling it to achieve a baseload level of revenues.’
Following “steady progress" in the first months of its financial year, InfraStrata recently said it expects ‘major renewable and fabrication projects’ to come into fruition in the months ahead.
The company noted that it now has the largest fabrication footprint in the UK, ‘with the capacity and capability of attracting large fabrication contracts by offering clients optimised delivery schedules, spreading fabrication risk across four sites and significant cost savings.’
Shares in InfraStrata were trading 2.12% higher this morning at 30.12p following the news.
InfraStrata is a London-listed firm focused on the development, commercialisation and operation of advanced high-value strategic infrastructure facilities across the globe.
The group holds a salt cavern gas storage project at Islandmagee in County Antrim, Northern Ireland is a pioneering low-cost fast cycle facility that it believes will provide ‘safe, secure and flexible gas storage that will in time serve the island of Ireland and the UK mainland.’
In May 2020, the company entered into a term sheet with West Face Long Term Opportunities Global Master L.P to acquire Meridian Holdings Co., under which sits the proposed Floating Storage and Regasification Unit Project (“FSRU Project”), located in North West England.
The Project will be the UK’s first to be developed and commercialised. Since more than 30% of the UK’s natural gas supplies arrive via LNG (liquified natural gas) cargoes, the FSRU is positioned to take advantage of LNG arriving in the UK seeking storage and regasification.
The estimated CAPEX for the FSRU Project will be circa £350m-£450m with further CAPEX optimisation planned through value engineering. The CAPEX for the FSRU Project is expected to be funded by putting together a consortium of partners at the project level. Estimated project revenues come to £80-£100mm annually with a 25-30 year project life.
Discussions with key partners have commenced with a consortium consisting of globally recognised companies involved in the development, construction, operations and commercialisation of regasification terminals worldwide will be formed in due course.
In August 2020, the Group completed the acquisition of substantially all the assets of Appledore Shipyard in North Devon, enabling InfraStrata to compete from a ‘dominant position at two distinct ends of the shipyard market’ being the lower end of the market at less than 119 metres of dock length, with H&W - Appledore and the upper end of the market, requiring dock lengths of 300+ metres with H&W - Belfast.
The group signed a Letter of Intent (“Lol”) with Triumph Subsea Services to build two Windfarm Development Vessels ("WDV”) at a length of 200m and a beam of 35m.
The vessels will be built with diesel-electric hybrid engines that will eventually transition into hydrogen fuel cells, offering what management considers to be the ‘greenest’ solutions to wind farm developers.
The WDVs will be used for fixed and floating wind farm installations and sub-sea cable laying and providing marine services for offshore carbon capture and green hydrogen projects.
Significant Forward Pipeline
As the Group stands today, the Directors of INFA have identified a potential weighted pipeline of “£2 billion in contract opportunities between now and 2025” and believe there are near term revenue opportunities of £80.5 million and up to £825 million in the medium term.
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