TEK-Ocean to continue providing onshore support to Beach Energy under agreement extension

TEK-Ocean Group Beach Energy ASX T3K BPT Geelong Port Supply Base onshore logistics
TEK-Ocean anticipates the agreement extension with Beach Energy will bring-in about $4-5 million in additional revenue.

Under a five-month agreement extension, TEK-Ocean (ASX: T3K) will now provide onshore support to Beach Energy’s (ASX: BPT) Geelong Port Supply Base operations to the end of June.

Based on historical activity levels and future assumptions, TEK-Ocean anticipates this will generate between $4 million and $5 million in additional revenue over the remaining contract term.

TEK-Ocean noted the contract also provides for further extensions as needed.

“We are extremely pleased to extend the Geelong Supply Base contract and continue our long-standing and valued working relationship with Beach in support of its ongoing operations to sustainably deliver energy to the eastern Australian market,” TEK-Ocean managing director and chief executive officer Alex Biro said.

“[The company’s] outstanding commitment to safety and the environment, while striving for operational excellence and energy security makes us very proud to be associated with Beach,” he added.

Strong growth

The contract extension with Beach follows “strong growth” in new business for TEK-Ocean during the December quarter.

Mr Biro said the company had been awarded “a number of new exciting contracts” in the Bass Strait and in Western Australia during the period.

“We are exceptionally pleased with our Q2 FY2022 results, it was a very active quarter in which we secured several new contracts at the same time as meeting our commitments to depart Singapore with a 60T AHC crane installed.”

The December period also saw TEK-Ocean completing its statutory five-year recertification activities for its TEK-Ocean Spirit vessel.

Rising revenue

Contract growth during the December quarter drove revenue for the period to $7.5 million, which was up 170% on Q1 FY2022 levels. This generated Q2 FY2022 earnings before interest tax depreciation and amortisation of $750,000.

“Our sales and operations teams exceeded our internal budgets with revenues up 9% against target for half year,” Mr Biro pointed out.

“Budgeted revenue for the half year was approximately $10.8 million, with actual revenue being approximately $11.8 million.”

Melbourne-based TEK-Ocean provides a multitude of services to oil and gas, marine and renewable energy operators.

These services cover maritime and subsea, logistics and shore-based, consultancy and personnel, engineering and project management, and specialist energy work.

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