VEEM records strong start to FY21 with $5.9 million in marine stabilisation orders

New orders include a 20-tonne gyrostabiliser being installed on a 54m expedition and yacht support vessel.

Australian marine technology group VEEM (ASX: VEE) has recorded $4.1 million worth of orders in the first six weeks of the 2021 financial year, compared to total sales of $4.8 million for the full 12 months ended June 2020.

Included in this total is the receipt of $2.8 million in orders for VEEM’s range of marine gyrostabilisers, bringing the company’s current forward order book to $5.9 million.

The new orders include a third VG1000SD gyrostabiliser for an experienced Australian owner, this time to be installed onto a 54m FCS 5009 expedition and yacht support vessel built by Netherlands-based Damen Shipyards.

The patented VG1000SD – which retails at $1.89 million – weighs 20 tonnes and is believed to be the world’s most powerful marine gyrostabiliser, providing significant roll reduction at all speeds (including stationary) to vessels between 60-75m as well as larger vessels using multiple units.

It is the second order VEEM has received for a VG1000SD to be installed onboard a Damen FCS 5009.

In July, the company received an order for a VG1000SD from offshore oilfield supply contractor Naviera Integral, marking the first sale of VEEM’s gyrostabilisers into the commercial offshore supply vessel market.

New customers

Innovative Dutch builder Heesen Yachts has placed orders for multiple gyrostabilisers for its range of 12 yachts currently under construction, including the 80m all-aluminium Project Cosmos, which has been labelled the largest and fastest yacht of its kind ever built.

VEEM has also welcomed Italian luxury builder Canados Yachts as a customer, which will fit a VG145SD gyrostabiliser into its flagship Oceanic 42.7m fast expedition vessel before year end.

Superyacht market

VEEM managing director Mark Miocevich said the new orders cement the company’s position in the superyacht market.

“It validates our decision last year to expand the gyrostabiliser [manufacturing] facility at our Perth premises, providing the capability to scale-up and meet customer demand,” he said.

“We have already received orders for $4.1 million of gyrostabilisers during the first six weeks of this financial year, which is a significant acceleration of orders compared to last year’s figures,” Mr Miocevich added.

High technology

VEEM designs and manufactures disruptive, high-technology marine propulsion and stabilisation systems for the global luxury motor yacht, fast ferry, commercial workboat and defence industries.

Its range of gyrostabilisers have been engineered to reduce a vessel’s rolling motion in waves by up to 95%, increasing on-sea time and improving personnel safety and efficiency in a wide range of ocean conditions.

While COVID-19 lockdowns in Europe and the United States this year caused a slowdown in new orders and delays for some existing shipments, Mr Miocevich said he expects gyrostabiliser orders to keep flowing given the number of recent enquiries and quotes.

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