Kelsian Group awarded $25.7m in extended NT ferry contracts
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The news: Kelsian Group has announced a five-year extension of ferry services contracts in the Northern Territory.
The numbers: The extended contract between Kelsian subsidiary SeaLink Northern Territory (SeaLink NT) and the NT's Department of Logistics and Infrastructure, secures up to $25.7 million of services funding over the five-year term, the company said.
Kelsian shares were down 3% to $3.80 by 3pm AEDT, having lost over 45% since January.
The context: SeaLink NT has operated the services, which run from Darwin to Mandorah and from Darwin to Tiwi Islands, since 2013.
Kelsian said the new funding arrangements are on substantially the same terms as the existing contract, with adjustments reflecting updated operating costs, works to be undertaken on existing vessels, and "a return that will meet our investment hurdles".
What they said: "SeaLink NT has been successfully operating ferry services in Northern Territory for more than 10 years, and we look forward to continuing to work closely with the Northern Territory Government to safely and reliably deliver these essential services to the communities and visitors to the region," SeaLink marine and tourism chief executive Donna Gauci said.
The source: ASX announcement
