Babylon locks in million dollar power contract
ASX listed Babylon Pump and Power’s strategy to add power generation to its suite of on site pumping services and products just got a shot in the arm with a $1.1m contract from Adenco to supply power generators to BHP Billiton’s Area C Surplus Water Pipeline Project in W.A.
The order represents a major boost for the company, who reported revenues of $500,000 in the March 2018 quarter.
The specialist pump and services provider told the ASX this week that it will supply, install and maintain the power generation equipment for 52 weeks from the first quarter of the 2019 financial year.
Works are expected to begin immediately, with commissioning scheduled for September 2018.
Babylon is curious in so much as it appears to have successfully picked the eyes out of the market by providing services in three distinct niche areas of need, with the company also banking significant revenues to date courtesy of its third service offering - specialised diesel engine maintenance and rebuilds.
Babylon reported in May that it had already recorded revenues of $560,000 and purchase orders totalling $800,000, just in the first month of the last quarter alone.
Recent activities have included securing further equipment rental work with CSIRO’S CCS RDD Project by providing dewatering pumps for use at an open pit nickel mine and rental dewatering equipment for use at a gold mine.
IN addition the company has been providing site-based diesel services at multiple gold mines.
Forrestfield-headquartered Babylon listed on the back of its end to end pumping consultation services in addition to the hire and sale of its dewatering pump units however the company has rapidly expanded into diesel engine and power generation services.
With the recent resurgence in the mining industry, Babylon appears to be well placed to meet the growing demand for services over the next couple of years.
Highlighting this, Australian forecaster BIS Shrapnel has estimated that maintenance expenditure in Australia’s resource industry will grow from $6.6bn in 2016 to $10bn per annum by 2021.
Babylon Pump & Power (BPP)
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