Brief: Axxis Geo Solutions Provides Update On Letter Of Intent

Fjord Defence ASA

17/12/2019 11:14

Dec 17 (Reuters) - Axxis Geo Solutions ASA  AGSOL.OL :
    * AXXIS GEO SOLUTIONS PROVIDES UPDATE ON LETTER OF INTENT
    * REFERENCE IS MADE TO NOTIFICATION FROM AXXIS GEO SOLUTIONS
ASA
(AGS) DATED 23 SEPTEMBER 2019, IN WHICH AGS ANNOUNCED A SIGNED
LETTER OF INTENT
    * AGS HAS JUST LEARNED THAT OUR CLIENT AND THEIR PARTNERS
ARE
DISCUSSING A REDUCED INITIAL SCOPE OF WORK COMPARED TO INITIAL
SCOPE OF 28 VESSEL MONTHS AND THAT EXECUTION OF THEIR CONTRACT
WILL BE SOMEWHAT DELAYED
    * CONSEQUENTLY, CONTRACT AWARD TO AGS IS ALSO DELAYED
    * PROJECTED REVENUES FROM FIRST PHASE OF CONTRACT ARE
EXPECTED TO
BE APPROXIMATELY USD 35 MILLION, WITH A POTENTIAL FOR FURTHER
UPSIDE
    * SUBJECT TO CONTRACT AWARD, AGS EXPECTS WORKING CAPITAL
POSITION
TO STEADILY IMPROVE
    * DELAY OF CONTRACT AWARD HAS HAD SIGNIFICANT NEGATIVE
IMPACT ON
WORKING CAPITAL POSITION OF COMPANY
    * CURRENT OUTSTANDING TRADE PAYABLES OF COMPANY IS
APPROXIMATELY
USD 33 MILLION
    * AS A CONSEQUENCE OF DELAYED CONTRACT AWARD, COMPANY IS
CONSIDERING VARIOUS OPTIONS TO STRENGTHEN FINANCIAL POSITION OF
COMPANY

Source text for Eikon:  ID:nObiKJ9wfa 
Further company coverage:  AGSOL.OL 

 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 778 51 10;))