Engineering and maintenance company Boom Logistics (ASX: BOL) has strengthened its position in the rapidly growing renewable energy sector with a $12 million contract awarded for wind turbine maintenance from Squadron Energy.
The contract involves providing crane support for maintenance tasks on Squadron Energy’s extensive wind asset portfolio. This work is scheduled to commence in H1 FY25.
Windfarm maintenance is a burgeoning segment within the renewable energy sector, and this contract positions Boom Logistics as an emerging player in this market. With over 3,500 wind turbines operating across Australia, the demand for maintenance services is substantial and growing.
In the first half of FY24, Boom Logistics derived 17% of its revenue from the renewables sector, underscoring its established presence in wind farm construction and maintenance. The maintenance contract with Squadron Energy will further enhance this presence, providing a steady stream of revenue and reinforcing the company’s commitment to supporting Australia’s transition to renewable energy.
“The maintenance contract builds upon our existing operational footprint within the renewables industry,” said Boom Logistics CEO, Ben Pieyre.
“With a large and recently installed wind turbine base, maintenance work provides a large and ongoing opportunity for Boom. The Company has secured a number of new contracts in FY24 reflecting both the strong end-market environment and our track record of operational delivery.
“Boom’s growing contract base coupled with our focus on improved operational efficiency and margins continues to underpin our improving financial performance.”
In addition to this contract, Boom Logistics has secured over $186 million in new contracts and contract renewals year-to-date in FY24, reflective of the end-market environment and Boom’s rising reputation. The company’s growing contract base, coupled with a focus on improving operational efficiency and margins, continues to underpin its improving financial performance.
With the global shift towards sustainable energy sources, the role of companies like Boom Logistics becomes increasingly vital in global efforts to support the renewable energy industry’s growth and stability.
For the Half Year ended 31 December 2024, Boom Logistics reported revenue of $129.7 million which represented a 30% increase on the previous corresponding half year with net profit after tax of $3.8 million up substantially on the $0.8m in the same period.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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1 Comment
Shraddha13
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Replyhttps://www.360iresearch.com/library/intelligence/renewable-energy-operations-maintenance