SAExploration Holdings Inc (NASDAQ: SAEX) is flying in the pre-market hours this morning, and for good reason. The company announced that it has been awarded several new projects with a value totalling more than $60 million.
As you could imagine, the news proved to excite investors, pushing the stock on a run for the top. Today, we’ll talk about:
- The new projects;
- what we’re seeing from SAEX stock as a result; and
- what we’ll be watching for ahead.
SAEX Announces New Projects
As mentioned above, SAExploration is having an incredibly strong start to the trading session this morning after the company announced that it has been awarded new projects. The announcement came by way of press release late in after-hours yesterday.
In the release, SAEX said that the new projects that it has been awarded come to a combined total value of $60 million. These new projects will be taking place in Alaska and Southeast Asia.
The company said that the project in Alaska is surrounds onshore data acquisition and data processing. While the weather restricts the amount of time that can be worked in the region, the company expects some operations with respect to the project to begin in the first half of 2019. Remaining operations from this project will take place in the first quarter of 2020.
In terms of the Southeast Asia project, the company will be providing ocean-bottom marine data acquisition services. These sevices are expected to be performed in the second quarter of 2019 and will be conducted in shallow water of depths up to 60 meters.
In a statement, Jeff Hastings, Chairman and CEO at SAEX, had the following to offer:
These new projects are the product of hard work and market positioning lining up with a rebalancing of capacity and demand in our niche markets. The new project in Alaska will utilize the remaining capacity of our North Slope crew for the current winter season, and substantially book the same crew for next winter. We believe these new projects, especially the work on the North Slope, will give us a great opportunity to realize incremental value through a reduction of rental costs from our new equipment profile.
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. In the case of SAExploration, the news proved to be incredibly exciting.
After all, the new projects will drive a large amount of revenue through the door. Considering the $60 million aggregate value here, it’s not shocking to see that investors are sending the stock up.
As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:44), SAEX is trading at $5.65 per share after a gain of $1.97 per share or 53.53% 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 SAEX. In particular, we’re interested in following the performance under this and other recnetly announced contracts as well as the company’s continued work to expand value by taking on new projects in the ocean data acquisition market. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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