There is some cause for celebration at Bergen Group (OSE: BERGEN) BMW (previously Bergen Mekaniske Verksted located in Laksevåg, Bergen) after it landed two large contracts on Wednesday. Just couple hours ago after market close, the company said it has been awarded a contract worth 1 billion Norwegian kroner by North Sea Shipping AS, a subsidiary of privately owned North Sea Shipping Holding AS for a large and advanced Offshore Construction Vessel (OCV). The ship is scheduled for delivery in Q2 2014 and will be chartered by a major international subsea company. It will be 142 metres long with a beam of 27 metres and a cabin capacity for 120 people and it will be able to perform complex subsea operations. It is ST-261 design and has been designed by Skipsteknisk in Ålesund
The contract is signed subject to financing, which is not always an automatic as can be observed from the Boa Offshore contracts, but the charter should help in such matters. There is also an option for a construction of a similar vessel planned for delivery in late 2014. The contract is the largest one to date for Bergen Group’s Shipbuilding Division, which is currently in a period of high activity but has struggled with delivery times due to problems in outsourcing the hull building. The hull for North Sea Shipping will also be built abroad and it is scheduled to come to Bergen in the Autumn of 2013.
Earlier on in the day, the company said that Bergen Group BMW received a frigate class maintenance contract from the Norwegian Armed Forces for the next two-years including further one-year options for an additional three year period. The contract value for the firm part of the order is estimated to be in between 150 and 200 million NOK. The scope involves planning, coordination and implementation of scheduled maintenance, corrective maintenance and other additional work on the Navy’s five frigates and it will be mainly carried out on a naval base outside Bergen. Such contracts are important as the company seeks to generate long-time business from complex maritime projects. Prior to the said contracts, the current order backlog at BMW would have provided work until Q4 2012.
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