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Harland & Wolff Group Holdings plc announced on 31 July 2023 it has received a Notice to Proceed (Letter of Intent) from a client for the mid-life upgrade and dry docking of a large vessel. The vessel is expected to be in dry dock for five months through early 2024, with an expected contract value between £60 million and £70 million. An immediate sum of £5 million will be made available to Harland & Wolff in 2023, with formal contract execution anticipated within 2-3 months as the LoI is non-binding.
| Date | 31 Jul 2023 |
| Time | 07:00:07 |
| Category | Corporate updates |
| ID | 6419H |
This announcement contains inside information
31 July 2023
Harland & Wolff Group Holdings plc
("Harland & Wolff" or the "Company")
Letter of Intent - Major Vessel Refurbishment
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 it has been issued a Notice to Proceed ("NTP" or "LoI") for the mid-life upgrade and dry docking of a large vessel. Harland & Wolff was chosen by the client for its ability to execute on a complex mid-life upgrade utilising the Company's market leading drydock in Belfast, the largest in the UK.
Subject to formal execution of the contract, the vessel is expected to be in the dry dock for a period of five months through early 2024 and the contract value is expected to be in the region of £60 million - £70 million, dependent on the extent of final works undertaken. As part of the overall project delivery, a sum of £5 million will be made available to the Company immediately to commence various workstreams in 2023 prior to the arrival of the vessel. Apart from the initial sum, this LoI is non-binding and will be subject to execution of a formal contract that is expected within 2-3 months.
A further announcement will be made on execution of the final contract.
For further information, please visit www.harland-wolff.com or contact:
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Harland & Wolff Group Holdings plc John Wood, Chief Executive Officer Arun Raman, Chief Finance Officer
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+44 (0)20 3900 2122 |
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Cenkos Securities plc (Nominated Adviser & Broker) Stephen Keys / Callum Davidson / Dan Hodkinson (Corporate Finance) Michael Johnson (Sales)
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+44 (0)20 7397 8900 |
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Liberum Capital Limited (Joint Broker) Nicholas How / Edward Mansfield / Lucas Bamber / Antonia Brown
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+44 (0)20 3100 2000 |
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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.