Papua New GuineaHi folks,
It's always hard to tell what information the market is pricing in Vs not.
One item that I think could end up being a large upcoming contract for Shawcor is the LNG development in Papua New Guinea. In 2009 Shawcor won a sizeable contract in PNG for the startup of PNG LNG at the time this contract was in excess of $170 million. Papua New Guinea appears set to go through another major wave of Capex relating to LNG and I believe that Shawcor stands to be a significant beneficiary given its historical experience in coating projects in Papua New Guinea as well as its pipeline coating facility proximity being next door in Indonesia.
If this does go through I could see this contract award being not less than double the initial contract awarded in 2009 and could be greater than that based on the various sizing of the pipe segments.
I am also a shareholder in High Arctic and they put out a good investor presentation highlighting further developments in PNG LNG (disclaimer: this should be considered information only and I don't care if you buy HWO).
Moral of the story, there is no doubt that Shawcor's pipe coating business has a decent runway ahead of it. Let's hope market participants are willing to pay up for this!
LR