Harland & Wolff Group Holdings PLC Contract Win - SeaRose Upgrade (7385Q)
October 20 2023 - 2:04AM
UK Regulatory
TIDMHARL
RNS Number : 7385Q
Harland & Wolff Group Holdings PLC
20 October 2023
This announcement contains inside information.
20 October 2023
Harland & Wolff Group Holdings plc
("Harland & Wolff" or the "Company")
GBP61 million contract award - SeaRose FPSO Mid-Life Upgrade
Harland & Wolff Group Holdings plc (AIM: HARL), the UK
quoted company focused on strategic infrastructure projects and
physical asset lifecycle management, is pleased to announce that
Cenovus Energy Inc. ("Cenovus") has awarded the mid-life upgrade
contract of the SeaRose Floating Production Storage and Offloading
("FPSO") vessel to Harland & Wolff (Belfast) Limited. This
contract follows from the Letter of Intent that was previously
announced by the Company on 31 July 2023. Cenovus Energy is an
international integrated oil and natural gas company headquartered
in Calgary, Canada, with a market capitalisation of circa
CA$54bn.
The base contract value is approximately GBP61 million. The
vessel is expected to arrive in in the first quarter of 2024 and
will be in the Building Dock for a period of more than three
months.
A number of pre-arrival works have already commenced, including
inspections, procurement of steel, fabrication of customised blocks
and other dry dock operations. The Company is to commence certain
fabrication works in FY 2023 so that it is fully prepared to
commence refurbishment and upgrade works as soon as the vessel
arrives next year. Upon completion of pre-arrival workstreams, the
Company is expected to generate revenues of approximately GBP10
million in FY 2023, with the outstanding balance expected to be
received in FY 2024. At its peak, it is estimated that there will
be circa 1,000 personnel working on the vessel including the
Company's staff and subcontractors.
Revenues from this contract are included within management's
revenue expectations for the Group to achieve in FY2023 and FY2024,
being GBP100m and GBP200m respectively.
John Wood, CEO of Harland & Wolff Group Holdings plc,
comments:
"I am delighted that Cenovus has chosen Harland & Wolff as
its preferred yard to undertake the mid-life upgrade of the
SeaRose. The vessel first came into Belfast in 2012 so we will use
our existing knowledge of this FSPO, in addition to applying the
latest technologies and innovations for these kinds of highly
specialised projects.
This is a significant win within our non-defence portfolio from
a global, blue-chip energy group and I am pleased that we are
gaining a reputation as a go-to yard for large and complex
programmes. With an estimated 1,000 personnel on-site, this project
will allow for further synergies in our execution, leveraging off
of personnel, skill sets and supply chains that will support the
upcoming FSS Programme."
For further information, please visit www.harland-wolff.com or contact:
Harland & Wolff Group Holdings plc +44 (0)20 3900
John Wood, Chief Executive Officer 2122
Arun Raman, Chief Finance Officer investor@harland-wolff.com
media@harland-wolff.com
Cavendish Securities plc (Nominated Adviser
& Broker)
Stephen Keys / Callum Davidson / Dan Hodkinson
(Corporate Finance) +44 (0)20 7397
Michael Johnson (Sales) 8900
Liberum Capital Limited (Joint Broker) +44 (0)20 3100
Nicholas How / Edward Mansfield 2000
Radnor Capital Partners (Investor Relations) +44 (0) 20 3897
Neville Harris / Joshua Cryer 1838
About Harland & Wolff
Harland & Wolff is a multisite fabrication company,
operating in the maritime and offshore industry through five
markets: commercial, cruise and ferry, defence, energy and
renewables and six services: technical services, fabrication and
construction, decommissioning, repair and maintenance, in-service
support and conversion.
Its Belfast yard is one of Europe's largest heavy engineering
facilities, with deep water access, two of Europe's largest
drydocks, ample quayside and vast fabrication halls. As a result of
the acquisition of Harland & Wolff (Appledore) in August 2020,
the company has been able to capitalise on opportunities at both
ends of the ship-repair and shipbuilding markets where there will
be significant demand.
In February 2021, the company acquired the assets of two
Scottish-based yards along the east and west coasts. Now known as
Harland & Wolff (Methil) and Harland & Wolff (Arnish),
these facilities will focus on fabrication work within the
renewables, energy and defence sectors.
In addition to Harland & Wolff, it owns the Islandmagee gas
storage project, which is expected to provide 25% of the UK's
natural gas storage capacity and to benefit the Northern Irish
economy as a whole when completed.
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