The Speedcast international Limited share price rises 2% with contract win

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The Speedcast international Limited (ASX: SDA) share price has risen by 2% today thanks to a contract win.

Speedcast describes itself as the largest provider of remote communications and IT services in the world. Its fully managed service is delivered via a global, multi-access-technology, multi-brand and multi-orbit of 70+ satellites and an interconnecting global terrestrial network, bolstered by extensive on-the-ground local support from 40+ countries.

The business serves more than 2,000 customers in over 140 countries in sectors such as maritime, energy, mining, media and cruise ships.

Today, the company announced that it has been selected by Noble Corporation plc to provide new IT communications equipment and fully-managed connectivity services to their global drilling fleet.

Speedcast will deliver end-to-end managed communication services to Noble’s fleet of vessels and rigs. The solution will replace all of the fleet’s hardware with installations of dual-band antennas and the latest modem technology.

Speedcast’s chief operating officer, Keith Johnson, said “This award is a milestone endorsement of the investment we have made to establish Speedcast as the global leader in the energy section.”

“This award allows us to demonstrate our truly global scale for reliable service in the most remote, harsh environments where critical and high priority connectivity solutions are required.

Foolish takeaway

Speedcast could be on to watch as it benefits from growing the growing cruise-liner business and other remote companies want the best communication connection as possible.

If the business produces another strong result for FY17 then that could see the share price go even higher.

I’m also tipping these shares to do really well over the next year.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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