Srt Marine Systems Share Discussion Threads

[owenski] 14/10/2016 13:07

Worth bearing in mind the wording even though no money is mentioned -

"The order is part of a national initiative which IS EXPECTED TO SEE UP TO 70,000 locally registered boats continuously monitored to enhance maritime security, safety and management.......................................

MARKS THE START of the rollout. We look forward to working with our partners in the future on this national initiative."

Saudi contract has ebbed back and forth for some time, and now it's started.

I would imagine we'll be seeing more contract announcement start ups in this FY, the wording of the recent TU suggested as much.

[2vdm] 14/10/2016 12:06

Yes, more good news and another toe through the door.Well done SRT. I'm not sure where this year will end up, but now really looking fwd to 2017-8

[fft] 14/10/2016 12:04

Lavalmy, you said "Saudi already have the base station infrastructure, I understand, and have had for a while."

Any idea who supplied that ?

This order seems far more nebulous than the Bahrain or Indonesia orders. It appears that GeoVs isn't being used. ABSEA not mentioned. No mention of value. No apparent recurring revenue. I get the impression that the order, while nice, is not quite what was originally hoped for or expected.

Perhaps more details will emerge later that dispel my worries.

[the prophet] 14/10/2016 10:55

cheers 9degress, rubbish and checking me posts, have now amended!

[9degrees] 14/10/2016 10:49

TP 3749 quote " joing the party".. in yr view sounds like the Chinese will be next then !
well done to SRT for all their hard work and persistence

[the prophet] 14/10/2016 10:06

Think you are correct, LaV, with your $30m. Its good to see the recent projects move north in their value as SRT's all encompassing offering brings in more opportunities, eg Bahrain and Indonesia, so that could well happen here as well.
I think we now have multiple over-lapping projects, lovely! Wonder who will be next to joining the party?.....

[lavalmy] 14/10/2016 09:48

Without reading too much into the phrasing of the RNS, but perhaps the words 'continously monitored' suggest more than mere terrestrial coverage. Of course, as Simon mentioned in the email sent about Sat-Trak, most boats will stay close to shore. But some won't.

From memory, the Saudi project was supposed to be worth US$30 million.

[the prophet] 14/10/2016 09:48

Great news, we've been waiting for this one for a while, so all the sweeter when it comes. Another national roll-out, fantastic. Well done from me as well to everyone at SRT.

[kalkanite] 14/10/2016 09:46

Hi Kinbasket

Yes agreed, ABSEA will be used where host countries don't have the necessary satellite facilities to pick up class B transceivers, I was generalising with the point being that any revenues from satellite coverage will only occur once the transceivers are in place. Whether their is recurring revenue from enabling host nation satellites to see their transceivers I'm not 100% sure?

These projects are roll outs that will take between 2 and 3 years to complete. I remember ST saying at the AGM that one nation was discussing an entire order of transceivers in one go, but SRT advised that it would be wiser to start with a small order and then add batches once any possible teething issues of the system had been sorted, very wise in my opinion.

[dieseltaylor] 14/10/2016 09:41

I think the security situation in the Persian/Arabian Gulf may have a very large part to do with this order ... but then perhaps I ma refining too much on that side of things.

The Yemen Houthi and Iran are not natural friends of the Saudi's and their allies.

[kinbasket] 14/10/2016 09:37

Kalkante

Not necessarily ABSEA transceivers. The decoupling from EA was in part so countries like Saudi can work with SRT to develop technologies to monitor via satellite using their own resources. Not being reliant on another countries/companies network is a significant selling point IMHO.

[hjb1] 14/10/2016 09:25

"ABSEA"?? what's that? lol

[kalkanite] 14/10/2016 09:14

Re satellite/recurring revenue - as been mentioned before, we need to get the ABSEA class B transceivers on boats before this can happen so is probably circa 2 years away.

[hjb1] 14/10/2016 09:09

as LaVal says, they have their own infrastructure, so not at this stage it seems..we will see.I am disappointed that satellite/recurring rev was not mentioned though.

[goodapple] 14/10/2016 08:55

Presume GeoVs will be part of the ultimate picture for Saudi?

[hjb1] 14/10/2016 08:52

homework, ha ha ! obviously a lot better than you do..lol

[kalkanite] 14/10/2016 08:48

I expected a much more enthusiastic response also so have decided to top up instead as SRT appears to be greatly undervalued.

There was a slot on the news last night about careful sustainable fishing of the arctic region as the European region has decimated fish stock due to over fishing. I don't think you can underestimate the importance of this, especially where some economies fishery adds up to 10% (IIRC)to the overall economy. Where next for any illegal fishing currently in Saudi? Other nations will follow as the benefit of an MDM system become obvious, particularly when given the national security and safety of vessel traffic that MDM systems provide.

Apologies if this sounds like ramping but I am very bullish about SRT's current pipeline and future prospects.

[donemyhomework2] 14/10/2016 08:47

Hjb do you understand the difference of lots from Loads?

[eagle eye] 14/10/2016 08:46

hjb1, No value attached to the order so not many people aware of the significance.
Well done to all at SRT....another national programme out of the starting blocks.

[hjb1] 14/10/2016 08:29

I expected more IMO!! so you reckon 2 (25k sells) is lots..lol

[donemyhomework2] 14/10/2016 08:20

Nearly 5% up after lots of 25,000 sells is not muted at all IMO.

[hjb1] 14/10/2016 08:16

somewhat muted market response so far, Maybe you will get your way LaVal.lol

[clarkey26] 14/10/2016 08:08

Don't get me wrong, I agree it certainly validates the concept of what SRT are doing and highlights the importance of tracking and monitoring in the region.

[techno20] 14/10/2016 07:55

This is taken from the last investor presentation in July, showing 4 Middle East opportunities. Shows the potential income opportunity. Guessing this is probably the last of the four. Saudi is hugely influential in the region, so hopefully others will follow soon....

PRIMARY VALIDATED SALES OPPORTUNITIES - PROJECTS
Region
Country
Description & Status*
Potential Value*
Middle East
Confidential
Following successful Bahrain reference – project being considered as a single, unphased national program. In direct discussions with relevant ministry
Total value ~ $30m
Middle East
Confidential
Completed extensive trials and undertaken consultations on requirements. Awaiting formal tender process for MDM System – implement in phases over 2 years
Total value ~ $20m
Middle East
Confidential
Significant enhancement to an existing national MDA system through full implementation of an SRT MDM system. In project evaluation phase.
Total value ~ $30m
Middle East
Confidential
Update of existing vessel monitoring system. In early technology and system functionality specification stages
Total value ~ $15m
Revenues – Future Opportunities & Drivers

[lavalmy] 14/10/2016 07:54

Clarkey

It shows a bit more than that. They have to start a roll-out somewhere and small is probably best to get over teething problems. What is important is that they have decided politically to monitor all 70,000 local boats. Practically, I imagine there will be issues to address, and no doubt SRT and Elcome will have thought of many of those.