ASX listed Babylon Pump & Power has landed a new $670,000 power generation and dewatering contract from mining giant BHP Billiton.
Under the initial six month contract, Babylon will supply and install power generation and dewatering pumping equipment for BHP.
Works are scheduled to begin immediately with commissioning scheduled for November 2018 and Babylon said it was optimistic that the contract will continue on a rolling basis at the end of the initial term.
In July, the company secured a $1.1 million contract to supply, install and maintain power generation equipment for BHP’s Mining Area C surplus water pipeline project.
It also secured $1m worth of work at the end of July that consisted partly of a power generation and pumping rental contract from a West Australian based asset rental company.
Other recent contractual wins for Babylon include a specialty pump rental contract with an international oil and gas service company and a diesel maintenance works contract from an international equipment supplier.
Notably, the total value of the contracts secured to date in the current financial year already exceeds the revenue of $1.6m that Babylon recorded in FY2018.
With the mining industry back on its feet, Babylon appears to have hitched its ride on the resource services sector at the right time if its growing contract book is any indication.
BHP isn’t a bad counterparty to be doing business with either – particularly if you are a relatively newly listed small cap company.
