Why the Dug (ASX: DUG) share price is climbing higher today

The Dug share price is storming higher today as the company announced that it had signed an agreement with a supermajor.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Dug Technology Ltd (ASX: DUG) share price is climbing today after the company announced a deal with an oil and gas supermajor. The Dug share price has been on a rocky ride since listing in early August. Dug shares are trading 2.44% higher at $1.26 at he time of writing.

What Dug does

Dug is an Australian supercomputing company based in Perth. The company has a rags-to-riches story with its first office built in co-founder Matthew Lamont's backyard. Since then, Dug has grown at an astounding rate to now operate four major international offices in Perth, London, Houston and Kuala Lumpur.

Dug makes its money through high performance computing as a service (HPCaaS). Its computers are typically used to analyse large datasets in the mining industry. However, in 2019 Dug launched its fully integrated Dug McCloud platform. This enabled the company to offer HPCaaS, scientific data analysis services and software solutions to a range of scientific sectors outside the resources industry.

Its computers are among some of the world's most powerful and green supercomputers.

Supermajor deal

The Dug share price went up on news the company had signed a deal with a large oil and gas supermajor. The deal is expected to generate more than US$1 million in revenue over the next 12 months.

A supermajor is the name used to describe the world's six or seven largest publicly traded oil and gas companies. Some of the supermajors include BP plc (NYSE: BP), Exxon Mobil Corporation (NYSE: XOM) and Chevron Corporation (NYSE: CVX). 

Dug managing director Dr Matt Lamont said the deal was "a great endorsement of our technology and reliability to receive ongoing work from one of the largest and most technically savvy companies on the planet".

Foolish takeaway

Dug is the first supercomputer company ever to list on the All Ordinaries Index (ASX: XAO). The Dug share price has fallen since its initial public offering (IPO) at $1.50 but shareholders will be hoping the news can spark a turn around in the share price.

Motley Fool contributor Daniel Ewing 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 Scott Phillips.

More on Share Market News

a couple look dumbfounded with exaggerated looks of surpirse on their faces as te mman holds a phone in his hand.
Share Market News

Top 5 investment themes exciting ASX shares investors in FY25

There's some old themes and some new ones...

Read more »

A young boy wearing a hat, sunnies and striped singlet looks fierce and flexes his arm in victory.
Share Gainers

Here are the top 10 ASX 200 shares today

It was certainly a day to remember for ASX investors this Friday...

Read more »

Hands reaching high for a trophy with a sunset in the background.
Investing Strategies

3 reasons I'm still buying ASX stocks in July despite record prices

There are many reasons not to invest. A new high is not one of them.

Read more »

Three girls compete in a race, running fast around an athletic track.
Share Gainers

Do you own the 3 best performing ASX 200 shares of FY 2025?

The top three ASX 200 shares have already gained 13% to more than 20% in FY 2025!

Read more »

A woman looks questioning as she puts a coin into a piggy bank.
Share Market News

Buying shares and 5 other ways investors intend to spend tax cuts: report

Here's what Aussie investors plan to do with their tax-cut savings.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Down 79% in FY 2024, can the Sayona Mining share price rebound in FY 2025?

Sayona Mining shares got smashed in FY 2024 with investors now looking ahead to FY 2025.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Share Gainers

Why Immutep, Kingsgate, Netwealth, and Ora Banda shares are storming higher

These shares are ending the week with a bang. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why GR Engineering, Infratil, Paladin Energy, and WiseTech shares are falling today

These shares are ending the week in the red. But why?

Read more »