Cape plc, an international leader in the provision of critical industrial services to the energy and natural resources sectors, is pleased to announce the award of strategic contracts in Australia and the UK and an update to the Groupís outlook.
Australian LNG insulation award on the Ichthys project
Capeís Australian subsidiary, Cape Australia Onshore Pty Ltd, has secured a contract with JKC Australia LNG Pty Ltd (JKC) for the provision of insulation and coatings services for the Ichthys Project Onshore LNG Facilities in Darwin, Australia. This initial contract is expected to commence in the second quarter of 2017, with the majority of activity expected to take place in the second half of the year.
UK North Sea contract award from BP
Cape Industrial Services Limited has secured two contracts to extend the Groupís longstanding relationship with BP in the UK North Sea for a further three years. These contracts have a combined estimated value in excess of £150 million.
The contracts, which have been effective from 1 January 2017, secure 400 core jobs for Cape employees in the North Sea as we provide Storage Tank Services, Industrial Cleaning, Heat Exchanger, Access, Insulation and Coating Services, along with General Operatives across BPís upstream and midstream assets. This award follows an extensive process conducted by BP, consolidating the various services provided by Cape over recent years under one delivery team and enabling Cape to drive sustainable efficiency improvements through economies of scale, reduced interfaces and additional cost savings.
The Group continues to trade strongly and, with the additional benefit of the Ichthys award, the Board now expects that the Groupís full year performance for 2017 will be materially ahead of its previous expectations. The Board anticipates that 2018 will be a more challenging year, driven by the expected reduction in volume from the current high level of construction activity in Asia Pacific and the effect of project delays and margin pressures in the Middle East. Cape expects to announce its results for the half year ending 2 July 2017 on 22 August 2017.