Ocean Power Technologies Inc (NYSE-A:OPTT) told investors it won three separate Indefinite Delivery Indefinite Quantity (IDIQ) multiple-award contracts (MAC) from the National Oceanic and Atmospheric Administration (NOAA), sending its shares as much as 12% higher in early Friday trading.
The company said these latest awards build on recent successes in the defense and national security space and add to its reputation as a reliable US Government contractor.
Under the the first contract, OPT said it will use its cutting-edge Uncrewed Maritime Systems to support NOAA in conducting vital marine resource surveys and research.
The second contract will see the company’s innovative technology play a pivotal role in enhancing NOAA’s meteorological and oceanographic observations, further advancing its understanding of the natural world.
Finally, the third will see OPT collaborate with NOAA to explore and characterize the depths of oceans, contributing to the discovery and preservation of invaluable marine ecosystems.
Describing the “significant and material” contracts as a pivotal moment in OPT’s history, CEO Philipp Stratmann commented: “OPT is committed to pushing the boundaries of technology and innovation in the marine industry, and these contracts underscore our dedication to creating sustainable and effective Uncrewed Maritime Systems and our capacity to deliver innovative and efficient solutions.
“We look forward to working closely with NOAA to achieve our shared goals of environmental stewardship and scientific advancement – while also generating value for our company and our shareholders in the process.”
OPT noted that it was one of several multiple award IDIQ contract holders selected by NOAA to provide Uncrewed Maritime Systems (UMS) Services to NOAA's Office of Marine and Aviation Operations (OMAO) and Uncrewed Systems Operation Center (UxSOC).
It said the contracts have the potential to result in millions of dollars of revenue for OPT, and the ordering period is set to span three years, commencing on September 1, 2023, and concluding on August 31, 2026.
Its shares retraced some of their gains to trade 3.3% higher at $0.43 shortly before midday in New York.
Ocean Power Technologies is a provider of ocean energy and intelligent data services through its innovative, low-carbon distributed and autonomous ocean power and data solutions, combined with its offshore engineering and design services.
~ updated with share price movement ~
Contact the author at stephen.gunnion@proactiveinvestors.com