Pressure Technologies Share Discussion Threads

[40 fathoms] 21/12/2024 00:06

It maybe due to the government announcing today that it had signed contracts with 3 of the winning bids from the HAR1 round and that the others should follow early in the New Year. There should be a very decent amount of near term work for PRES from some of the projects in the HAR1 round.



In addition they have said that HAR2 round, the results of which should be announced soon, has been massively oversubscribed.

Not near term but also this week we have had Germany and Norway place a joint order with ThyssenKrupp for another 6 submarines. ThyssenKrupp has historically sourced from Chesterfield.

[aishah] 20/12/2024 14:43

Bit of a move up recently. News due?

[40 fathoms] 03/12/2024 14:31

This is the report on which the FID was taken for BPs Aberdeen Hydrogen Hub if you search in the document for Chesterfield you will note that we are penciled in to provide the Hydrogen Storage elements of the project. This would be for 109 cylinders. 6 banks of 500 barg storage each containing 9x 1.2 m3 cylinders & 5 banks of 900 barg storage each containing 11x 0.3 m3 cylinders.

The Aberdeen project is rated to produce @300 tonnes of hydrogen per year, by comparison the largest HAR1 project approved is in Bradford and that is rated to produce @4,500 tonnes per year.

[40 fathoms] 30/10/2024 15:20

These HAR1 projects should now roll forward pretty quickly. Plenty of high pressure steel cylinders needed across these projects and these will be need in pretty short order given the time lines. No doubt we will see some decent orders flow from some of these projects.

The HAR 2 round is also very close behind this.

[cerrito] 24/10/2024 09:04

baner and 40 Fathoms
Fingers crossed that your upbeat thinking comes true.

[cockerhoop] 24/10/2024 07:35

Cerrito, they're not thinking of 25, it's 15 by 2050.

[40 fathoms] 24/10/2024 07:26

Not a party pooper, but also this is not one of the things we had expected to start a party ! They are still to come (hopefully) 1) Certification in to the US submarine supply chain, 2) Hydrogen orders from HAR1 & 2 rounds 3) Other major submarine programs like AUKUS or the Triomphant replacement.

Yes, it is pretty clear now that for every type 26 Frigate built you can put us down for @£950k of orders. It seems like Norway is looking at the Type 26 and I am sure one or two other as well.

[baner] 24/10/2024 07:15

There will very likely be further orders of this nature Cerrito. This is a really good stamp of approval from most demanding customers, confirming CSC´s status as a AAA supplier.

[cerrito] 24/10/2024 07:09

Good news this morning but call me a party pooper this will not move the dial all that much given over the next 5 years it will add £0.5m of income against the CSC income in the last FY of £20.7m.
Speaking from ignorance, surprised that Canadians thinking of having as many as 15 destroyers.

[c3479z] 13/10/2024 17:46

have more faith in Amazon than HM Gov't attempt to pick technology winners.

[cerrito] 13/10/2024 13:20

Well done 40 Fathoms for unearthing that which had yet to make it on the news section of Cheesecakr Energy's website

[40 fathoms] 10/10/2024 23:22

Could be interesting if this technology start to gain traction, given we picked up GBP750k of work from their demonstration project earlier in the year.

September 24, 2024 - Cheesecake Energy from the UK will deploy its compressed air and thermal technology to provide safe, reliable energy storage within Amazon's European operations, reducing emissions from electricity usage. Cheesecake Energy was founded at the University of Nottingham and uses energy storage systems to capture electricity generated by solar power during the day to provide additional energy during peak hours, or at night when the sun doesn’t shine. The technology will be used in selected Amazon fulfilment centres (FC) in Europe.

“Storing energy for longer periods is vital as we accelerate towards net zero,” said Michael Simpson, Chief Commercial Officer at Cheesecake Energy. “We are excited to test our innovative technology with Amazon. This will help the company store excess solar energy and use it when needed. It’s great that Amazon shares our belief in the potential of the Cheesecake Energy technology, to reduce the cost of energy storage as well as ensuring renewable energy is used efficiently.”

[40 fathoms] 10/10/2024 22:13

It is all within the same announcement although I will admit the hydrogen production aspects of it was not picked up at all in the press.



"Today’s announcement confirms up to £21.7 billion of funding available, over 25 years, to make the UK an early leader in 2 growing global sectors, CCUS and HYDROGEN, to be allocated between these 2 clusters. The UK’s commitment was first made in 2009, and the confirmation of funding today represents a major success story for British industry."

"This announcement will also help turbocharge the low carbon hydrogen sector by paving the way for the UK’s first large-scale HYDROGEN production plant, decarbonising vital industrial sectors."

"This is a vital step forward, catapulting hydrogen towards long-term certainty we need in the UK. Supporting hydrogen at scale in 2 of the biggest UK industrial clusters is the government giving hydrogen another green light as a key component of its green energy ambitions. We particularly welcome the news that this will provide thousands of new jobs given the HEA’s solid focus on hydrogen’s role in delivering clean growth."

[cerrito] 10/10/2024 21:28

While I had seen ,49 Farhoms, the news on carbon capture I have missed the news on hydrogen you refer to.
If you could point me in the right direction that would be great.
Hopefully your less pessimistic stance than mine will be born out by events.

[40 fathoms] 09/10/2024 23:21

It's fantastic that this is now closed, we are now nearly debt and liability-free with cash in the bank.

I am a bit less worried than Cerrito about the potential scale of the business, considering the potential pickup in the hydrogen sector. The government's announcement yesterday about hydrogen and carbon capture clusters will require up to 15,000 static and road trailers cylinders. Additional, the HAR auction rounds will require tens of thousands more. These are both driven by government policy, already in motion (HAR1 is complete, and HAR2 is in progress). Clearly this work will have to be won but the UK hydrogen market alone could need up to 50,000 cylinders over the next decade.

For context, we currently produce between 1,800 and 2,000 cylinders per year, mainly for military purposes. Doubling that number would make this a very profitable company, with an annual turnover of about GBP 35-40 million. With minimal extra investment, we have the capacity to produce @6,000 cylinders a year.

[cerrito] 09/10/2024 19:53

You are right baner to say in most situations it would be good to have such a shareholder base.
The issue here is that now that the sale is effective (and good that all the legals done so quickly) we have a company that is not of the size to justify an AIM listing -and indeed there is v little liquidity in the shares -and that Harwood and PG will do a deal that is better for them than for us..and as I have said before I take comfort from the presence of Schroders, recognising that I may be delusional in taking this comfort.

[baner] 09/10/2024 07:49

Cerrito

Is it not positive with the three large shareholders here? They are highly professional investors and in this stock only to make as much money as possible - which all shareholders would benefit from ? Why do you believe this is “not very satisfactory”?

[cerrito] 07/10/2024 23:07

After quite a bit of trading last Monday September 30, the market has yawned and gone back to sleep with virtually no trading.
Perhaps everyone is like me with a lack of motivation to buy or sell.

[cerrito] 29/9/2024 21:57

Understandable why the sale took so long as Ragu Vamsi, who have progressed in the last20 years far more successfully than PRES, have no other operations in Europe and hence the level of support being provided to them which no doubt took time to negotiate.
Yes good that a buyer was found for the whole division at a respectable price.
Clearly Chesterfield is too subscale to justify a listing long term and we private investors find ourselves in the not very satisfactory situation as we watch Harwood,Schroders and PG with their 56% combined shareholding decide on the corporate structure going forward.

[40 fathoms] 27/9/2024 23:02

Things start to look a lot better. So we will be a net cash business to the tune of £2.9m (I don't count the finance leases & ROUA liabilities as current) with a large unencumbered freehold property and the possibility of another £1.5m of variable proceeds.

All that we need now is to see some of those Hydrogen orders starting to flow and we will be in a good place.

[40 fathoms] 20/9/2024 22:04

The fact it looks like we will see a PMC sale in the very near future is very good news. When set against this, the "slight" miss on guidance is unimportant in my view. The key here is going to be if/when we will start to see some of the Hydrogen orders flow in to the CSC business.

[baner] 20/9/2024 13:57

good to see that the entities to be sold are performing well in 2024. maybe they will get 7-10m for these business turning PT into a good net cash position with the unencumbered Sheffield property worth as much as the market cap of the company - the location of this is nothing but spectacular.

[cerrito] 20/9/2024 06:57

I reminded myself that last year adjusted ebitda was £2.1m and a £0.9m loss tha year before.
Singers have put it under review from buy and withdrawn forecasts which is sensible given the unknown of the sale and profit adjustments. I am going on the basis from the wording that adjusted ebitda will be £850/900k.
I would have thought that all of this news has been reflected in the recent share price decline but who knows.
I note that in July Singers had £1.1m adjusted ebitda forecast.

[cerrito] 15/9/2024 08:26

I have to say I am reluctant to buy sub 30p.
The PHC delay getting to me but more the rather gloomy assessment of the oil market over the coming years.

[40 fathoms] 29/8/2024 10:20

@Cerrito, you are probably right and to their credit they have always suggested it would not be quick.