GCIHarland & Wolff wins £60m+ contract for vessel upgrade at Belfast drydock
() , the maritime engineering specialist, said it has been issued a Notice to Proceed for the mid-life upgrade and dry docking of an undisclosed large vessel. The contract is estimated at up to £70m. Harland was chosen for its expertise in executing large and complex mid-life upgrades, and its market-leading drydock in Belfast - the largest in the UK.
The final contract value is dependent on the extent of final works undertaken, but £60-70m is expected. To speed up project delivery, £5m will be made available immediately, so the shipbuilder can commence various workstreams in 2023 prior to the arrival of the vessel. Once in drydock, the vessel is expected to undergo upgrades for a period of 5 months through to early 2024.
Apart from the initial £5m payment, the Notice to Proceed is non-binding and will be subject to execution of a formal contract, expected within 2-3 months.
The milestone further underscores Harland's growing reputation in the maritime industry, and is expected to have a positive impact on the local economy. Investors welcomed the news, pushing shares 10.1% higher in early trade. The movement added to 's larger rally over the past week, with shares up 40% since Friday 21 July.
In its recently issued audited final results for FY22 ended 31 December 2022, the company detailed significant progress during the period, with revenue growth of 51% to £27.96m, and a contracted backlog of £900m, compared to £100m in FY21. Late last year, a Harland-led consortium was awarded the massive £1.6bn contract for the Royal Navy's Fleet Solid Support (FSS) Programme, prompting a large jump in share price, which has since consolidated. Later in FY23, Harland was awarded its subcontract for the project, yielding several years of significant revenue visibility.
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