CIU.L Regulatory News (CIU)

14 May 2008 09:47



Cape PLC

("Cape", the "Group" or the "Company")

Cape announces significant contract award in its Far East 

Pacific Rim Region

Cape PLC (AIM: CIU), the international provider of essential support services to the energy and resources sectors, is pleased to announce that it has received a letter of intent from STP & I Co Ltd for the erection and provision of access services for the PLUTO LNG Project.

Cape has a long and established track record in bidding for and completing new project work in the Export & Import LNG Sector safely and on time. Over the last 30 years Cape has secured access services contracts on more than 50% of all new LNG projects worldwide including a number of major projects on the North West Shelf of Australia.

Cape's recent acquisition of PCH, TCC and Concept underpins and demonstrates its commitment to, and capability within, this important region. PCH currently provides common user access services on North West Shelf Train 5 in Karratha, whilst Cape, through its facility in Darwin, holds the contract on Darwin LNG (Bayu-Undan). PLUTO is the next major LNG investment by Woodside Petroleum following on from previous investment on the North West Shelf LNG Train 1 through 5. The project is scheduled to commence production in 2010. 

Martin May, Chief Executive Officer of Cape, commented:

"The award of this contract is particularly pleasing in light of the recent acquisitions within Australia. In terms of scale this contract would be almost as significant on a man hour basis as Sakhalin LNG 2."

Ends

For further information, please contact:

Cape PLC

Martin K May, Chief Executive Officer +44 20 3178 5380

Bell Pottinger Corporate & Financial

Nick Lambert / Victoria Geoghegan +44 20 7861 3232 / +44 7811 358 764

Notes to Editors 

Cape, which is listed on AIM (CIU), specialises in the provision of access scaffolding, insulation, fire protection, specialist cleaning and other essential services throughout asset life-cycles for major industrial clients in the international energy and natural resources sectors.

The Company employs c.12,000 people in 23 countries worldwide with its four main markets being the UK, the Middle East, the CIS and Caspian and the Far East/ Australasia. In the year ended 31 December 2006, strong organic growth enabled Cape to report turnover of £295.5 million. Cape is also set to benefit from several acquisitions completed in 2007, especially in the important Australasian region where three companies with an annualised turnover of c. £125 million have been acquired.

Cape's future growth is underpinned by several factors:

Global demand for energy within non-OECD countries which is expected to increase by 221% over the next 30 years.

Within the OECD, the desire on the part of energy producers/ users to extend the life of assets ahead of the next investment cycle.

An increasing appetite on the part of Cape's major customers to outsource non-core services and to look for bundled service proposals.

A preference on the part of blue chip clients to work with safe suppliers who have access to, and the ability to train, local workforces to exacting standards.