Key Highlights
- Total contract value: Approximately S\$70.3 million secured by Nordic Group Limited across various business divisions.
- Client base: Contracts awarded by both new and repeat customers, including multinational companies from the marine, offshore oil and gas, petrochemical, semiconductor, infrastructure, and security sectors.
- Revenue visibility: The contracts have staggered delivery and completion timelines, stretching up to 3Q2028, supporting long-term revenue sustainability.
Details of Secured Contracts by Division
1. System Integration Division
- Secured approximately S\$11.1 million in capital and ad-hoc contracts.
- Scope includes manufacturing valves and actuators, control and tank gauging systems, as well as electrical and instrumentation work.
- Manufacturing includes a series of 25 vessels and 1 Floating Production Storage and Offloading (FPSO) unit, with deliveries scheduled mainly from 4Q2025 to 1Q2027.
2. Precision Engineering Division
- Secured approximately S\$15.7 million in contracts.
- Services provided include machining and mechanical assembly.
- Most projects are expected to complete by 2Q2026, underpinning medium-term order book strength.
3. Scaffolding, Insulation, and Petrochemical & Environmental Engineering Divisions
- Collectively secured approximately S\$32.7 million in contracts.
- Projects involve scaffolding, insulation work, and maintenance of environmental infrastructure.
- Contract completions extend to 3Q2028, providing strong long-term revenue visibility.
4. Cleanroom, Air and Water Engineering Solutions Division
- Secured approximately S\$4.5 million in ad-hoc, maintenance, and hook-up service contracts.
- Majority of these contracts will be completed by 4Q2026.
5. Structural Engineering and Construction Services Division
- Won contracts valued at approximately S\$6.3 million, covering capital, ad-hoc, and maintenance projects.
- Projects include engineering work for maintenance and installation of fuel storage systems and a training facility.
- Capital and ad-hoc projects are expected to complete by 4Q2026. Maintenance contracts span 45 months, starting from November 2025.
Important Information for Shareholders
- Diversified Revenue Streams: The wide range of contracts across multiple divisions and industries demonstrates Nordic Group’s strong industry positioning and resilience.
- Long-Term Revenue Visibility: With contract end-dates stretching to 3Q2028, shareholders can expect sustained order book strength, which is supportive of long-term growth and recurring revenue.
- Customer Mix: The involvement of both new and repeat multinational customers suggests continued confidence in Nordic Group’s capabilities and potential for further contract wins.
- Financial Impact: According to the company, the contracts are not expected to have a material impact on the consolidated net tangible assets per share and earnings per share for the current financial year. However, the sheer size and duration of these contracts could enhance future earnings visibility and investor sentiment over the medium-to-long term.
Potential Share Price Catalysts
- These significant contract wins, especially with new and recurring multinational clients, could improve market confidence in Nordic Group’s revenue outlook and operational execution.
- The long duration and sizable value of the contracts may provide upward momentum for the share price, particularly if the company continues to secure similar projects or exceeds execution targets.
- Given the contracts’ staggered completion timeline, investors should watch for future updates on project milestones, potential upsizing of orders, or further wins from existing clients.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult their financial adviser before making any investment decisions. The information presented is based on company announcements and may be subject to change without notice.
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