Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Found this seems quite a quick decision ?
"Construction of the ship is expected to begin within the next six months"
https://www.cityam.com/boris-johnson-announces-royal-yacht-britannia-replacement/
stokey12,
Your post makes eminent sense. One would hope that similar support funding would be available for domestic contracts. As I have said from Day One, H&W's only chance is public money and lots of it, quick!
Are these types of Government guarantees available for UK based contracts then, and if so does anyone have any knowledge on these schemes or where we can read up on the types of guarantees available ?
Jabido In relation to your 15.32 post I think the reason why the UKEF funding was not available for the Saipem Contract was that the jackets were not being exported. The jackets were being installed on turbines within UK Territorial waters. Had the windfarm been outside UK territorial waters then it is possible that the funding could have been available. I recall at the November roadshow JW did make reference to the UKEF in relation to another possible contract.
Jabido,
Exactly.
Here's the link for the article i was talking about.
https://www.gov.uk/government/news/trade-minister-announces-ukef-support-for-scottish-offshore-wind-exports
Ttny what a great bit of research you have done, thank you. This is precisely the type of support I expect from government. Key questions arise from this. Did we meet the criteria for this regarding the recent Saipem contract? Did the bod apply? If so why was it rejected? If not then why the eff not? If they didn't apply and criteria was met then heads should roll, starting at the top. To choose a placing rather than government support would make a lot of, if not all us, PI's pretty angry.
For the recently awarded 26M Saipem contract, Infrastrata were required to provide a 4M performance bond prior to the contract commencement. 4M of the capital raise in the last few weeks (with issuing the new shares) is to be used for this purpose.
With time on my hands today i decided to research a bit further into the various types of contract bonds that can apply in business. It was very interesting to read about the types of bonds, sureties and guarantees that can be required in contract negotiations and on researching these I stumbled across quite a dramatic positive headline from Friday past.
It's where the UK International Trade Minister Graham Stuart announced financial support with a performance bond for a Scottish company, FoundOcean, to provide grouting foundations for 100 wind turbines in Thailand. (These aren't jacket foundations that H & W are doing but the construction grouting material to secure the bases to the actual sea bed)
FoundOcean's CEO comments :-
'Offshore wind projects often require a performance bond – ensuring completion of the project – at up to 15% of the contract value before work is even commenced. This would have meant putting a significant deposit forward and, due to the scale of the Taiwan project, FoundOcean was unable to arrange this through its bank. UKEF stepped in with bond support that enabled FoundOcean to fulfil the contract'.
My point is that since 2019 UK Export Finance (UKEF) have provided 500M of export finance guarantees for offshore windfarms being built in Thailand and this is quite a sum of capital, bearing in mind it was supporting a total of only 30 jobs in FoundOcean. Could these guarantees be available to Infa ?
Does anyone here on the page have knowledge of Export Finance guarantees and can these apply to services (such as those that H & W provide) and not just product (like FoundOcean's turbines base grouting) ?
If H & W had access to UKEF guarantees, surely this would permit tendering on higher value contracts and would remove or reduce the need to come up with non working holding capital such as this 4M to secure the Saipem 26M contract.
It's good to see progress on the NnG Scottish windfarm.
Saipem awarded the 26M contract to Infrastrata for 8 foundation jackets with work due to commence at H & W on 1st July. From reading previously I believe Saipem are also paying monthly on this contract work. This will definitely help with the cash flow situation in the pursuit of the company starting to become profitable.
https://www.energyvoice.com/renewables-energy-transition/wind/uk-wind/328525/nng-shunt-reactor/
Hi Chrisatrdg,
I'm in 2 minds.
On one hand, appears good news. On the other, it is still relatively tiny numbers for the scale of the operation now.
Hopefully contracts are forthcoming pronto, including a marked uplift in value, and indeed profit, as we'll be burning through through cash at a rate of knots now.
This is turning into a nervous few months for me.
TheEast
JUNIOR SUPPLY CHAIN OFFICER - see link below
https://www.harland-wolff.com/news/jobs/junior-supply-chain-officer/
Edit: Come on fellows no Company recruits like H&W & its related companies are doing so at present & they are clearly gearing up for near term contracts.
SP 'Cheaper than chips' I believe time to top up if one has funds.
He makes a strong case for a new, low cost, multi role ship platform which can significantly raise the number of RN vessels but also drive export potential. He has also written to the MOD to speed up the process surrounding the support ships contract. All in all, it is hugely supportive of the wider government pledge to reinvigorate the shipbuilding industry. Supportive words are, as always, never enough for INFA detractors. However, this is a powerful statement of intent from a politician in the right place. Stay with INFA as the risk reward is beginning to sway in the right direction. I so hope that a major player has a significant short position. Yes, its been the right ploy up until now, hats off to them. However, time will tell and I am still happy with my exposure to this company.
Lottie123 I do not subscribe to the Telegraph so could not read the whole article. I would note that the MP quoted is the Chair of the Defence Select Committee. See my 10.04 post of yesterday for the title of one of the Enqueries that it is running. I wonder what one of the recommendations will be.
https://www.telegraph.co.uk/business/2021/06/06/calls-build-low-end-ships-navy/
Speedy ,spot on ship building imho
Speedy_Gonzalez In relation to your 00.09 post that is indeed an impressive range of vacancies across all the sites. It looks like they want to bring the ship design work inhouse.
It's clear there has to be a significant amount of funding coming into infa in the near term and by near term I think before the year end.I still believe island magee will provide infa with the funds and has been the plan all along.
Has anybody looked at the H&W careers page lately? It seems something is definitely brewing, and it's not coffee! Perhaps it's time for me to buy back in......
https://www.harland-wolff.com/careers/
For those at a loose end on Tuesday afternoon there is this
At 2.30pm: Oral evidence
Inquiry The Navy: purpose and procurement
Admiral Sir Philip Jones, First Sea Lord (2016-2019)
Professor Jonathan Caverley
Professor of Strategy at US Naval War College
Apprenticeships, experienced engineers and technicians,Boris stating he wants to build a UK shipbuilding industry DYOR!!!
That's always a possibility setanta. However in the case of h&w I don't feel that. Particularly as Boris came to appledore in person. They may also think that if we were on the brink of collapse, but we are not. Therefore government support at this time or any time since we bought belfast would in my view be at much lower risk than a bailout. Hope you are keeping well
Jabido, hasn't it occurred to you that the government may not think this one may not be worth investing in?
I see from the Belfast Harbour website that the Dublin Swift has joined Stena Europe in the Dry Dock. So the Building Dock remains empty as it has done all this year as far as I am aware.
Just seen this at least it is only a pledge so INFA can make the pledge then ignore it for the next decade. https://news.sky.com/story/businesses-bidding-for-major-govt-contracts-will-have-to-sign-pledge-to-be-net-zero-by-2050-12325126?dcmp=snt-sf-twitter
Lottie123 In relation t your 04.43 post I see the Germans have no objection to state aid if they are the ones providing it. Hopefully the Shipbuilding Strategy will include provision for state aid.