Harland & Wolff Group Holdings Receives Letter of Intent for Major Vessel Refurbishment
Shares of Harland & Wolff Group Holdings experienced a significant boost on Monday, following the news that the company has been issued a letter of intent for a major vessel refurbishment. The expected contract value for this project is estimated to be up to £70 million ($89.9 million).
Shares at 0743 GMT surged by 10% or 1.15 pence, reaching 12.5 pence.
As a strategic-infrastructure projects company, Harland & Wolff Group Holdings has received a notice to proceed with the mid-life upgrade and dry docking of a large vessel. The vessel is anticipated to undergo dry dock maintenance for approximately five months, starting in early 2024. The final value of the project will be determined by the scope of the works undertaken, varying between £60 million to £70 million.
To initiate various workstreams in 2023 before the arrival of the vessel, an immediate sum of £5 million will be made available.
It is important to note that, besides the initial amount mentioned, the letter of intent is not legally binding and is subject to the execution of a formal contract. The formal contract is expected to be finalized within the next two to three months.
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