Member Article

New Australian and UK contracts worth over £150m to energy firm Cape plc

Energy services company Cape plc has secured strategic contracts in Australia and the UK, worth a combined estimated value in excess of £150m.

Landing two contracts to extend its relationship with BP in the UK North Sea for a further three years, the deals secure 400 core jobs for Cape employees.

In addition, Cape’s Australian subsidiary, Cape Australia Onshore Pty Ltd, has secured a contract with JKC Australia LNG Pty Ltd 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.

Set to announce its results for the half year ending 2 July 2017 on 22 August 2017, the Cape board now expects that the group’s full year performance for 2017 will be materially ahead of its previous expectations.

The board did however disclose that 2018 will be a more challenging year for the business, 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.