Babylon Pump & Power’s strategy of adding broader maintenance works to its suite of pump rental services has led to it securing another $1m worth of contracts with work to start immediately
In a market update this week, the company said it has secured a new power generation and pumping rental contract with a West Australian based asset rental company and a specialty pump rental contract with an international oil and gas service company worth a total of $550,000.
Under the 24 month pumping rental contract, Babylon will supply and maintain power generation and pumping equipment for the asset rental company’s use on various Water Corporation sites in Western Australia.
For the oil and gas contract, the Babylon will supply specialty rental equipment for work on Varanus Island, Western Australia.
These contracts will use equipment from Babylon’s existing fleet and require capital expenditure for new equipment.
Babylon has also secured a $500,000 diesel maintenance works contract from an international equipment supplier and local service contractor for the rebuild and supply of large Caterpillar diesel engines.
Work for the contracts will begin immediately.
Management said it has also secured an $800,000 asset and debt financing facility from National Australia Bank to support its operations.
Earlier this month, Babylon secured a $1.1 million power supply contract at BHP Billiton’s Mining Area C project in the Pilbara.
The company said customer engagement continues to be encouraging, with a growing pipeline for diesel engine maintenance, pumping solutions and power generation work.
The slew of new contracts further underwrites the ASX listed junior who reported revenues of $500,000 for the March 2018 quarter.
