Contract awards and trading update

5 June 2017

Cape plc
("Cape" or “the Company”, and together with its subsidiaries, the "Group")

Contract awards and trading update

 

Cape plc (CIU.LN), 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 Group’s outlook.

Australian LNG insulation award on the Ichthys project

Cape’s 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 Group’s 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 BP’s 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.

Outlook

The Group continues to trade strongly and, with the additional benefit of the Ichthys award, the Board now expects that the Group’s 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.

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Enquiries

Cape plc                                                       +44 (0) 1895 459 979
Joe Oatley, Chief Executive
Michael Speakman, Chief Financial Officer
Ian Wood, Head of Investor Relations

Buchanan                                                      +44 (0) 207 466 5000
Bobby Morse, Ben Romney, Chris Judd

This announcement contains inside information.

 

Forward-looking statements

Certain statements in this document are forward looking. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that may or may not occur and could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Such risks, uncertainties or assumptions could adversely affect the outcome and financial effects of the expectations, beliefs, hopes, plans, intentions, strategies and events described herein. Therefore, forward-looking statements contained in this document regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which are based on the knowledge and information available only at the date of this document’s preparation. For a description of certain factors that may affect Cape’s business, financial performance or results of operations, please refer to the Principal risks on page 34 of the 2016 Annual Report and Accounts.

 

About Cape:

Cape (www.capeplc.com), which is premium listed on the main market of the London Stock Exchange, is an international leader in the provision of critical industrial services principally to the energy and natural resources sectors. Our multi-disciplinary service offering includes access, insulation, engineering and specialist coatings and fireproofing, environmental services, heat exchanger replacement and refurbishment, storage tanks and refractory. In 2016, Cape employed c.16,100 people working across 23 countries and reported revenue of £863.5 million.

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