InfraStrata (INFA ) highlights three recent milestones for the Company and progresses to the next phase of the UK Fleet Solid Support Programme 

In-Service Support 

The Harland and Wolf Belfast team have provided their very first in-service support to a Virgin cruise Vessel. 

Obviously, the ability to provide added value service support to seagoing vessels whilst in operation, without the requirement for dry docking which incurs significant costs for the operators, provides the Company with a significantly larger addressable market and smoother earnings curves throughout the financial year. 

Virgin Cruise Repairs 

The Dorset Spirit is currently sailing from Canada to Belfast for repair works and will grace the esteemed Harland % Wolf building dock until the works have been completed.  

This is the first time that a vessel of this size will be gracing the building dock since the acquisition of Harland % Wolf in XXXX 

P&O Azura 

Coincidentally, the Harland & Wolf docks in Belfast will also be hosting the P&O Azura at the quayside of the Repair Dock.  

The Azura is the largest cruise vessel to have entered and moored at the Harland & Wolff dock. 

(Source: Abobe.Stock) 

MT Entsha 

Meanwhile at Appledore, North Devon, the Company awaits the arrival of the MT Entsha towards the third week of October.  

Fabrication work has already commenced on a major crane upgrade that will be required on the vessel once she is in the dock.  

Importantly for the dock itself and its surrounding communities, this project will effectively reactivates the fabrication halls of Appledore and demonstrates its readiness to take on larger and more complex works programmes in the future. 

UK Fleet Solid Support Programme 

Team Resolute has been selected by the Ministry of Defence for the Fleet Solid Support Programme and invited into the Commercial Procurement Phase (“CPP”) of the programme 

Harland & Wolff is an integral part of proposal at this stage and will be participating in the design stage within the CPP, alongside BMT and Navantia. 

Further, the Harland & Wolff led consortium consisting of Foreship and SMC is one of the bidders that has been down-selected for the design phase of the prestigious National Flagship Programme. 

National Flagship Programme 

The Harland & Wolf led consortium, including Foreship and SMC, has been one of the bidders selected for the design phase of the prestigious National Flagship Programme to design and build the new National Flagship for the UK.  

The ship, the first of its kind to be built and commissioned by the UK, will boost British trade and drive investment into our economy. The vessel will be used to host high level trade negotiations and trade shows and will sail all over the world promoting British interests. 

The ship, the name of which will be announced in due course, will be the first national flagship since 1997 when the HMY Britannia was decommissioned.  

However, its role will be distinct from that of any previous national flagship, reflecting the UK’s new status as an independent trading nation. 

The then Defence Secretary Ben Wallace was speaking at the National Flagship Engagement Day for industry stated: “Our ambition is for something special, not just a cutting-edge ship, but a truly national flagship. A floating embassy to promote the UK’s diplomatic and trading interests in coastal capitals around the world: hosting high level negotiations, trade shows, summits and other diplomatic talks. A prestigious showcase for UK skills and expertise. Designed to incorporate leading technologies in power, propulsion and practice. Making the most of digital systems and autonomy to support its crew from the Royal Navy. The greenest ship of its kind, environmentally and ecologically advanced, maximising the use of sustainable fuels and materials.” 

John Wood, Group CEO of commented: "It is fantastic to see multiple contracts being awarded to Harland & Wolff across Belfast and Appledore. These range from minor "bread & butter" type of works to major contracts that have the capacity to grow in value over time. We are now being recognised as a shipyard business that is professional, cost effective and customer attentive. This recognition is clearly demonstrated by a series of new client wins and repeat business from our existing clients. Looking ahead, I believe that we have laid the firm foundations for rapid growth and the build-up of a contractual pipeline for 2022 and beyond." 

View from VOX 

InfraStrata, soon to be renamed Harland and Wolf, have clearly executed on their plans to become a major UK infrastructure partner for tome of the largest operators of ferries, cruise ships and the Royal Navy. 

The inclusion In the =design phase of the National Flagship Programme illustrated the incredible skillsets across the Company and with the global markets for cruise and trade ships recovering post restricted travel, the outlook for the Company looks very strong indeed. 

Shares in INFA have obviously been negatively impacted by the concerns around the macros markets for large ship building projects and the lack of cruise holidays. However, recent announcements such as energy prices surging prompting companies to look at energy storage again, entering the wind farm markets and the sharply recovering markets for cruise and trade ships should provide regular positive news for the Company over the next 12 months to drive the shares higher. 

Reasons to  INFA 

InfraStrata is a London-listed firm focused on the development, commercialisation and operation of advanced high-value strategic infrastructure facilities around the globe. 

Energy Storage      

The group holds a salt cavern gas storage project at Islandmagee in County Antrim, Northern Ireland is a pioneering low-cost fast cycle facility that it believes will provide ‘safe, secure and flexible gas storage that will in time serve the island of Ireland and the UK mainland.’      

In May 2020, the company entered into a term sheet with West Face Long Term Opportunities Global Master L.P to acquire Meridian Holdings Co., under which sits the proposed Floating Storage and Regasification Unit Project (“FSRU Project”), located in North West England.      

The Project will be the UK’s first to be developed and commercialised. Since more than 30% of the UK’s natural gas supplies arrive via LNG (liquified natural gas) cargoes, the FSRU is positioned to take advantage of LNG arriving in the UK seeking storage and regasification.      

The estimated CAPEX for the FSRU Project will be circa £350m-£450m with further CAPEX optimisation planned through value engineering. The CAPEX for the FSRU Project is expected to be funded by putting together a consortium of partners at the project level. Estimated project revenues come to £80-£100mm annually with a 25-30 year project life.      

Discussions with key partners have commenced with a consortium consisting of globally recognised companies involved in the development, construction, operations and commercialisation of regasification terminals worldwide will be formed in due course.     

Pipeline 

The Directors of INFA have identified a potential weighted pipeline of “£2 billion in contract opportunities between now and 2025” and believe there are near term revenue opportunities of £80.5 million and up to £825 million in the medium term.