The Pointerra Ltd (ASX:3DP) share price finished the day up 17% after coming out of a trading halt with the announcement of three new US contracts.
The 3D geospatial data company resumed trading on the ASX this morning after requesting the halt on Friday with its share price frozen at 34.5 cents apiece.
Pointerra shares shot to 44.5 cents just after open, gaining 29%, before ending the session at 40.5 cents apiece.
Let's take a closer look at what the company announced.
Image source: Getty Images
What news did Pointerra release this morning?
The company announced a series of contracts with both new and existing US energy utility customers this morning: Entergy Corporation (NYSE: ETR), Pacific Gas & Electric (NYSE: PCG), and Gulf Power, a division of NextEra Energy (NYSE: NEE).
Pointerra touts itself as the world's fastest end-to-end 3D data solutions company.
The Entergy contract will bring in between US$2.37- $US4 million (A$3.29-$5.56 million) with the final sum to be determined in the coming weeks.
Entergy is a US electricity producer and retail distributor but also operates natural gas distribution businesses in the US south. It has engaged Pointerra to help the company respond to damage to its network caused by Hurricane Ida in August.
The Pacific Gas & Electric contract is for around US$0.70 million (A$0.97 million) to commence a 'digital twin' project. This involves mapping the US company's assets in specific service areas over a 14 month period, starting 1 January 2022.
Finally, the collaboration with Gulf Power for US$0.05 million (A$0.07 million) covers processing work on the company's existing Pointerra3D platform.
What does this mean for Pointerra?
During Pointerra's recent Managing Director's presentation, the company announced it was expecting material growth in annual contract value (ACV) from a number of sectors.
According to the presentation, the company's previous ACV ran at US$11.7 million at the end of October.
This reflected continued efforts to add new customers and generate spending among existing customers in surveying and mapping, utilities, transport, mining, and oil and gas in both the US and Australian markets.
The company said it is pushing to solve "sector-specific challenges" in "AEC, Transport, Mining, Oil & Gas and Defence during recent quarters" by 2022-23. It plans to do this by continuing to invest in new people, capabilities, product, and research and development.
How has the Pointerra share price been performing this year?
The Pointerra share price has had a fairly volatile year, losing 23% of its value over the last 12 months and 20% year to date.
These returns have lagged the benchmark S&P/ASX 200 Index (ASX: XJO) which is up more than 10% over the past year.
