VEEM Limited (ASX: VEE) has confirmed that Strategic Marine has advised that the VG140SD VEEM Gyro will now be fitted as standard on its fourth-generation fast crew boat (FCB) due to the benefits afforded through improved stabilisation.
As a consequence of this decision, Strategic Marine has accelerated the delivery dates for the 12 gyrostabilisers that it ordered under the exclusivity agreement with VEEM in June 2023.
Strategic Marine will now receive three VEEM VG140SD Gyrostabilizers before 31 December 2023 and the remaining nine during the second half of FY24. Under the exclusivity agreement the delivery was spread over three years.
Due to the acceleration of the delivery dates, VEEM expects to report revenue from gyrostabilisers in excess of $10 million for FY24 – double that of FY23.
VEEM and Strategic Marine have been working together for several years on the incorporation of the VEEM gyro into their latest fourth-generation fast crew boat (FCB). Strategic Marine launched the new vessel to the offshore energy industry, with the VEEM gyro as a key feature, in Singapore in March 2023. Strategic Marine is marketing the gyro as a unique selling point for their product which delivers superior economics and vessel capabilities for operators.
Under the exclusivity agreement signed in June 2023, VEEM will supply its VG70, VG100 and VG140 marine gyrostabilizers to Strategic Marine on an exclusive basis for use on crew transfer vessels within South East Asia and on specific wind farm crew vessels in Europe. Strategic intend to install the gyros on their own vessels but may also on-sell the gyros to third parties for retrofits or new-builds within the exclusivity boundaries.
Strategic Marine will exclusively use VEEM gyrostabilizers and will promote the use of VEEM gyros on its vessels. Strategic Marine has an option to extend the exclusivity for a further year provided it has met all its obligations plus purchased a further three units.
VEEM is very excited by the decision of Strategic Marine to include the VEEM Gyro as standard on its fourth-generation fast crew boat platform. With our investment over the past four years in the gyro facility, supply chain and staff, we have the capacity to build these gyros on the accelerated time frame required by Strategic Marine,” VEEM Managing Director Mark Miocevich said.
