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Trading statements

Cape materially ahead of previous forecasts

05 June 2017 09:23

Cape continues to trade strongly and expects its full year performance for 2017 to be materially ahead of previous forecasts.

Cape said its Australian subsidiary, Cape Australia Onshore Pty Ltd, had secured a contract with JKC Australia LNG Pty Ltd (JKC) for the provision of insulation and coatings services for the Ichthys project onshore LNG facilities in Darwin.

Cape said this initial contract was expected to commence in the second quarter of 2017, with the majority of activity expected to take place in the second half of the year.

It also said that Cape Industrial Services Limited had secured two contracts to extend the group's longstanding relationship with BP in the UK North Sea for a further three years.

It said these contracts had a combined estimated value in excess of £150m.

It said: "The contracts, which have been effective from 1 January 2017, secure 400 core jobs for Cape employees in the North Sea as we provide storage tank services, industrial cleaning, heat exchanger, access, insulation and coating services, along with general operatives across BP's upstream and midstream assets.

"This award follows an extensive process conducted by BP, consolidating the various services provided by Cape over recent years under one delivery team and enabling Cape to drive sustainable efficiency improvements through economies of scale, reduced interfaces and additional cost savings."

Looking ahead, the group said that it continued to trade strongly and, with the additional benefit of the Ichthys award, the board now expected that the full year performance for 2017 would be materially ahead of its previous forecasts.

But it said the board anticipated that 2018 would be a more challenging year, driven by the expected reduction in volume from the current high level of construction activity in Asia Pacific and the effect of project delays and margin pressures in the Middle East.

At 9:23am: (LON:CIU) Cape PLC share price was +0.75p at 242.75p

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