The Boom Logistics Limited (ASX: BOL) share price is surging following a new contract win with GE Renewables. At the time of writing, the lifting solutions and crane provider’s shares are up 6.6% to 16 cents.
Let’s take a closer look at what the company announced.
What’s driving the Boom share price higher?
The Boom share price is climbing as investors appear pleased with the latest update.
According to its release, Boom advised that it has secured work on the Bango wind farm in the Southern Tablelands region of New South Wales.
The project will see Boom provide a number of lifting services for the construction of the wind farm. The company will deploy a fleet of 12 cranes, which will include three 750 tonne capacity cranes. In addition, a team of 40 people comprising of specialist technicians and project management will manage the project. It’s expected that once complete, up to 38 wind towers will be installed, generating roughly 240 MW. This is enough energy to power about 100,000 residential houses.
While no financial details were given in the release, Boom stated that the project is due to commence this month.
What did the head of management say?
Boom CEO and managing director Tony Spassopoulos commented:
We have an experienced team mobilising to site, with the priority on safety first, focused on customer service and project delivery.
We continue to expand our wind farm projects business and demonstrate our capability as the leading Australian lifting solutions provider in this market segment.
Addressable market opportunity
The company noted that the energy sector remains an attractive opportunity as Australia transitions over to cleaner energy. More than 1,800 towers are earmarked for installation in the next 3 years, representing a robust market for Boom.
Complementing the potential growth, the company also mentioned that around 3,000 existing wind turbines across Australia require ongoing maintenance activity. Boom has logged increased bookings from its support business, which has further added to its revenue streams.
The Boom share price has jumped 34% in the past 12 months but is down 13% year-to-date.