Cape wins $20m Gulf contract

CAPE, which provides support services to the energy and natural resources sectors, has won a $20m maintenance contract in the Middle East.

The Wakefield-based group has signed a three-year deal with the Bahrain Petroleum Company to provide access, thermal insulation, asbestos management, refractory and fireproofing services.

It said the contract would be worth a minimum of $20m £10.2m) over the three years.

Cape said it has secured its first contract within the Gulf to provide a heat exchanger overhaul, also with Bahrain Petroleum Company, as well as conducting a pilot test on crude oil sludge treatment.

Cape carries out services including cleaning and maintenance for the oil and gas sectors, insulation, fire protection and coatings.

At its annual general meeting last week chief executive Martin May told shareholders that the company was seeing “robust organic growth across our international business units and the integration of our Australian acquisitions is on schedule creating cost and operational synergies across the footprint”.

Mr May said growth continued to be underpinned by the global demand for energy and that Cape’s presence in the oil services and petrochemical markets now accounted for more than 50% of its turnover.

The group is on track to reduce debt levels during the year by not less than £30m, he said.