RE:RE:RE:BOOOOOM !!! Contract 720M !!!I think the upgrades may come a little later once construction begins and assets are in place, but who knows. All I know is that this is a massive contract (even with BDI being 49% owner) at $720M and that will produce substantial revenues over the anticipated 4 year period. The best part is that a good deal of the assets that will be utilized for lodging are already in BDI's fleet, so I would anticipate the costs for installation/setup to be on the lower side. BDI is very lean, so this kind of revenue will have an absolutely huge positive impact on the bottomline for Black Diamond Group.
In terms of shareholders and share price, BDI has mostly traded below $2 for the last 2 years and I don't see a lot of resistance, so I anticipate a pretty significant surge up to the $3-$4 price levels of 2018. There will be a few significant insitutional investors I would imagine once this news is fully digested over the next couple of days. This contract makes BDI a lot more favourable compared to its competitors. Just look at the "Ratios" tab of Civeo and BDI in their stockhouse pages. BDI's Gross Margins are way better than CIVEO's (BDI = 45% vs CIVEO = 29%). A 44% Gross Profit Margin on a contract of this size will have a massively positive impact on Net Profit.
Awesome.