- Newly acquired Riverside Guardian lands key contract
- Part of strategic acquisition of Riverside Marine earlier this year
- Significant multi-year deployment for the vessel
- Contract has potential to generate up to approximately $11.6M
Bhagwan Marine’s (ASX: BWN) strategic acquisition of Riverside Marine earlier this year is paying off with the awarding of a contract for the deployment of the Riverside Guardian vessel.
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The two-year contract, with an option for a further two years with a global Tier 1 energy company has a minimum committed value of approximately $5.8 million and has the potential to generate up to approximately $11.6 million over the initial two-year term and the two one-year extension options.
Mobilisation is expected to commence shortly.
The Riverside Guardian has been operating as a local charter vessel within the Riverside Oceanic business. Through Bhagwan’s customer relationships, established position in the offshore energy sector and business development capability, it has secured a significant multi-year deployment for the vessel, increasing utilisation and generating additional earnings from existing fleet capacity.
MD and CEO, Loui Kannikoski, said the contract represents a significant milestone and demonstrates the strategic value of the Riverside Oceanic transaction through the delivery of a meaningful revenue synergy.
“The award of this contract is an excellent outcome for Bhagwan Marine and demonstrates the strategic value of the Riverside Marine acquisition,” he said.
“A key objective of the acquisition was to generate revenue synergies by leveraging our customer relationships and market presence to increase volume and utilisation across the combined fleet. Securing a multi-year deployment for the Riverside Guardian with a global Tier 1 energy company is a tangible example of that strategy in action.
“Our focus remains on driving organic growth, embedding Riverside Marine and positioning the Group to capture blue-sky growth opportunities in adjacent sectors. We look forward to supporting our customer through the safe and reliable delivery of this contract.”
In early February Bhagwan entered into a share sale and purchase agreement to acquire 100% of Riverside Marine Holdings on a debt free cash free basis with a normal level of working capital, for an enterprise value of up to $130 million.
Mr Kannikoski said the acquisition represented a step-change in scale and scope for Bhagwan, strengthening the company’s position as a preferred marine solutions partner.
BWN was steady at 29.5¢ with a Mkt cap of $119.1M prior to markets opening.
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