Shares in Harland & Wolff Group (AIM:HARL) were winched up 15% to 13p after the Belfast shipbuilder said it has won a £61 million contract to upgrade the SeaRose floating production storage and offloading (FPSO) vessel.
Cenovus Energy Inc (TSX:CVE), the Canadian oil giant, will deliver the FSPO vessel in in the first quarter of 2024, where is expected to remain in H&W's building dock for at least three months, with a peak of around 1,000 staff and contractors engaged in the work.
The AIM-listed company expects to be paid £10 million once it has completed "pre-arrival workstreams" including inspections and procurement in the current financial year, with the outstanding balance expected to be received in 2024.
No change was made to guidance for this or next year.
Chief executive John Wood noted that the vessel first came into Belfast in 2012, so H&W will be able to use its existing knowledge in addition to applying the latest technologies and innovations.
"This is a significant win within our non-defence portfolio from a global, blue-chip energy group and I am pleased that we are gaining a reputation as a go-to yard for large and complex programmes."