11 Dec 2019 07:00
11 December 2019
Northbridge Industrial Services Plc
("Northbridge" or the "Group")
Contract Renewal on Improved Terms
Northbridge Industrial Services (AIM: NBI), the industrial services and rental company, is pleased to announce that the five joint tender contracts originally awarded to Tasman's Joint Venture ("JV") partner in Malaysia, Olio Resources SDN BHD ("Olio"), have been extended for a further two years on improved terms.The original contracts were awarded to Olio for a three year term in November 2016 at the depth of the downturn in the oil and gas market. The JV between Olio and Tasman started at the beginning of 2018, with Tasman and its subsidiaries Tasman South East Asia (based in Malaysia) and Tasman Asia Pacific (based in Singapore), supporting the JV in the supply of drilling tools and services to Petronas and its partners in the region.
The improvement in terms relate to inspection and repair services which are offered alongside the rental of oil tools to the joint tender partners, who include five of the top international Oil and Gas operators in the region.Whilst the JV is currently loss making, this extension with revised terms coupled with improving revenues, will make a substantial contribution to reducing the deficit in FY 2020 and, if revenue continues to improve as expected, to generating profits for Northbridge from FY 2021.Other businesses within the Group continue to make good progress and the Board is confident that Northbridge is in line to meet current management expectations.
For further information
Northbridge Industrial Services plc 01283 531 645
Eric Hook, Chief Executive Officer
Iwan Phillips, Finance Director
Shore Capital (Nominated Adviser and Broker) 0207 408 4090
Robert Finlay / Antonio Bossi / Henry Willcocks
Buchanan 0207 466 5000
Charles Ryland / Stephanie Watson
About Northbridge:
Northbridge Industrial Services plc hires and sells specialist industrial equipment. With offices or agents in the UK, USA, Dubai, Belgium, Germany, France, Australia, New Zealand, Singapore, China, Brazil and South Korea, Northbridge has a global customer base. This includes utility companies, the oil and gas sector, shipping, banking, mining, construction and the public sector. The product range includes loadbanks, transformers and oil tools. Northbridge was admitted to AIM in 2006 since when it has grown by providing a high level of service, responsiveness and flexibility to customers, by the acquisition of companies in the UK, Dubai, Australia, Belgium, New Zealand and Singapore and through investing further in those acquired companies to make them more successful. Northbridge continues to seek suitable businesses for acquisition across the world.