Harland & Wolff Group Holdings PLC (AIM:HARL), the shipbuilding company, jumped over 12% higher on Monday after it won a vessel refurbishment contract worth up to £70mln.
Executing a “complex mid-life upgrade” at its drydock in Belfast, the biggest in the UK, the company will commence work on the contract for five months in early 2024, a statement revealed.
The contract is expected to be worth between £60mln and £70mln depending on the extent of the work, with the London-listed firm receiving an initial £5mln in order to complete “workstreams” in 2023.
Having signed a binding letter of intent, the parties are expected to sign the formal contract in the next two to three months.
Earlier this year, contracts amounting to around £10mln were secured by the firm in multiple markets including commercial fabrication and cruises/ferries.
Shares in the engineer are down a quarter in the year-to-date, but after rallying on Monday they’re now trading at just under 13p.