Babylon Pump and Power has secured a $1.5m asset finance facility from National Australia Bank to support its contract to supply power generation to BHP’s Mining Area C surplus water pipeline project. The facility and $4.5m raised through a convertible loan issue gives the company cash reserves to grow its asset fleet and pursue larger contracts.
ASX listed Babylon Pump and Power is poised to grow its asset rental fleet and pursue larger contract works that offer rapid payback on investment after securing a $1.5m asset finance facility from National Australia Bank.
The facility was arranged to support last month’s $1.1 million power supply contract from BHP Billiton.
Along with the $4.5m it raised earlier this month through an oversubscribed convertible loan issue, Babylon can now pursue more opportunities in line with its growth strategy.
The company has enjoyed numerous successes in securing contracts in recent months.
In addition to the 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.
This consisted of a power generation and pumping rental contract from a West Australian based asset rental company, a specialty pump rental contract with an international oil and gas service company and a diesel maintenance works contract from an international equipment supplier.
The contracts secured to date by Babylon already exceed its revenue of $1m in the fourth quarter of the 2018 financial year.
The company is now moving to engage directly with more blue chip clients and has multiple rental proposals outstanding for longer term power generation and specialty oil and gas pumping opportunities with top tier clients.