GCIHarland & Wolff notes ‘increasingly exciting times’ as revenues surge 65%
() , the marine engineering specialist, announced its unaudited interim results for the six months to 30 June 2023, citing a a 65% revenue increase and impressive operational progress.
Revenues stood at £25.53 million, a 65% increase from the previous year’s £15.41 million. Looking ahead, directors believe that trading remains on track to achieve FY23 revenues of £100 million, with revenue guidance for FY24 of £200 million.
In February 2023, the Fleet Solid Support Manufacture Subcontract with Navantia was signed, expected to bring in £700-£800 million in total revenues. The company's backlog now stands at approximately £1 billion for the next seven years, up by £100 million since March 2023.
Harland's Defence business saw material progress through the FSS programme, which was described as 'transformational’ for the company and is expected to enable the regeneration of Belfast and Appledore over the next 18 months.
Energy also emerged as a key market for Harland as the company expects it to fuel near-term revenue growth.
Post-period end, the judicial review of Harland's Islandmagee Gas Storage Project was made in its favour. The Islandmagee Project is technically suitable to store, blend, process and introduce hydrogen into the network, setting it up to stimulate growth and monetisation of hydrogen production and consumption.
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Soaring revenues coupled with strong operational progress in H1 demonstrate exciting times ahead for Harland.
Post-period end, the maritime engineer has kept up this momentum as it was recently awarded a contract to undertake repairs on the heavy lift vessel Sun Shine, owned by Korea-based Pan Ocean Group, for a value estimated at £0.8m.
Other post-period highlights include a significant project involving the mid-life upgrade and dry docking of a large vessel with expected revenues ranging from £60-70 million. Harland also secured its first contract win for a heavy lift vessel in Belfast, amounting to £1.50 million.
The string of positive news from Harland over the end of July and into August drove shares 67% higher since July 21 2023.
Importantly, the judicial review going in Harland’s favour represents an exciting opportunity for the company. The timing of the project is notable as the UK continues to struggle to maintain adequate gas supplies in light of the conflict in Ukraine. In addition, hydrogen could be a crucial source of energy in 2020-2040, providing a baseload back-up in the event of insufficient renewable generation.
Overall, Harland has shown impressive momentum throughout the period and post-period, with the FSS contract providing substantial baseload over the next five years. Coupled with significant opportunities in energy and renewables markets, the maritime engineer is in a good position to continue along its strong trajectory.
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