Ocean Power Technologies Inc (NASDAQ: OPTT) is making a run for the top in the market this morning, and for good reason. The company announced that it has won a new contract with a leading oil and gas exploration and production company.
Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The contract win;
- what we’re seeing from OPTT stock as a result; and
- what we’ll be watching for ahead.
OPTT Stock Gains On Contract Win
As mentioned above, Ocean Power Technologies is having a great day in the market today after announcing that it has signed a contract with a leading oil and gas company. The announcement came by way of press release early this morning.
In the release, the company said that the contract surrounds the completion of a 12-week paid feasibility study. OPTT will examine the use of its products and services in monitoring subsea wells during decommissioning activities.
The company said that the work was issued under a recently announced Master Service Contract and that the company will execute the contract under its Innovation & Support Services vertical.
In a statement, George H. Kirby, President and CEO at OPTT, had the following to offer:
This study will evaluate the use of our PowerBuoys® in monitoring multiple customer wells during oil field decommissioning activities in the very deep and challenging waters of the Gulf of Mexico. We believe our solutions will reduce the cost of our customer’s operations and will also increase safety and improve operational flexibility by providing an unmanned, autonomous power and communications platform.
Feasibility studies are an excellent way for us to apply our solutions as the first step toward deploying our products within customer operations. We will leverage our many years of experience with marine systems and deployment services to analyze the installation and operation of OPT’s solutions in this very challenging application. More often oil and gas operators are coming to OPT to tap our expertise and solutions to tackle tough problems. I am proud that we have been selected for this study, and we look forward to working closely with this customer.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Ocean Power Technologies, the news proved to be overwhelmingly positive.
With this new contract win, the company will have the ability to increase revenue. Of course, revenue growth is exactly what investors want to see. So, it’s not surprising to see that excited investors are sending the stock screaming for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:32), OPTT is trading at $9.90 per share after a gain of $4.90 per share or 97.89% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on OPTT. In particular, we’re interested in following the story surrounding the company’s continued work to expand value through its Master Service Contract as well as expansion of sales outside of this contract. Nonetheless, we’ll continue to keep a close eye on the news and bring it to you as it breaks!
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