Shares in Gulf Marine Services PLC (LON:GMS) floated higher after the provider of self-propelling vessels posted a bullish update about the state of the oil and sector.
The industry has been crippled by low oil prices and weaker-than-expected demand over the past 18 months or so, but GMS thinks it taken a turn for the better.
The company has followed up the two new contracts it won at the end of December with another, long-term tie-up today.
It has agreed a three-year deal to lease out one of its mid-size vessels for three years to a national oil company in the Middle East, with delivery of the vessel slated for early on this year.
“The new charter, which together with other recent contract wins has increased our total backlog by approximately two-thirds since 1 November 2016, demonstrates that the market is showing clear signs of recovery,” said chief executive Duncan Anderson.
“This contract win has also further strengthened our business relationship with a strategic NOC client and improved our current geographic diversity.”
Investors were clearly happy with the news, with shares up more than 15% shortly before close of play to trade at 56.5p.
11.15am...Gama Aviation shares take flight after BBA merger
Shares in Gama Aviation PLC (LON:GMAA) soared late on Tuesday Morning after the aircraft charter specialist told investors that it has merged its US aircraft management and charter business with that of BBA Aviation PLC (LON:BBA).
The agreement will see the creation of the US’s largest aircraft management business with over 200 aircraft under management, Gama said.
The tie-up is also expected to deliver significant additional growth for the company’s US ground business through the ability to cross-sell maintenance services to the additional aircraft.
“We are delighted to announce this exciting deal and to be teaming up with BBA Aviation in the US,” said Gama chief executive Marwan Khalek.
“The enlarged business creates a market leader and an unrivalled platform for growing our share of this massive business aviation market.”
Although Gama said the deal is unlikely to have any impact on earnings this year and next, investors were buoyed nonetheless with shares up more than 10% to 150p.
9am...HaloSource makes a splash after tie-up with Fortune 500 firm
HaloSource Inc (LON:HAL) made a splash on Tuesday Morning after it told investors that it would be partnering up with Chinese electrical appliance manufacturer Midea Group.
Shares soared more than the 60% higher after the tie-up with the Fortune 500 company was announced.
Midea is expanding its presence its presence in India, and its latest products launched in the country will make use of HaloSource’s HaloPure water disinfection technology.
“We are pleased to announce this very important, initial collaboration with Midea in India,” said HaloSource acting chief executive James Thompson.
“This agreement also reinforces our strategy of being the water purification technology inside the devices of market-leading partners around the globe.”
HaloSource estimates the residential water purification market in India to be worth more than US$600mln and is expected to grow even more over the coming years.
The US-based firm’s HaloPure technology can quickly kill off 99.99% of waterborne viruses and 99.9999% of bacteria, keeping water fresher for longer.
Shares were up 62% to 1.5p in early trading on Tuesday.