American Electric Technologies, Inc. (NASDAQ: AETI) is engaged as a “power delivery solutions” provider to the energy sector. Shares of the Houston, Texas-based are skyrocketing 220%, through early trading on Monday, December 3, 2018. Over the past three months, American Electric Technologies has seen average daily volume of 83,314 shares. However, volume of 15.98 million shares or dollar volume of $20.45 million, has already exchanged hands through early trading on Monday.
Shares of American Electric Technologies are surging on Monday, after the company announced that its Chinese joint venture, BOMAY Electric Industries Company, Ltd., has received a major order for drilling rig control systems for domestic use within China. A total of 40 drill rig systems have been ordered. American Electric Technologies anticipates the first ten units will be shipped before the Chinese New Year in February. The remainder of the systems are estimated to be shopped by July 2019. Each drilling rig system has an estimated value of around $1 million per system. Here is the full press release detailing of the major drilling rig order:
American Electric Technologies, Inc. Press Release:
HOUSTON, Dec. 03, 2018 (GLOBE NEWSWIRE) — American Electric Technologies, Inc. (NASDAQ:AETI) (the “Company”) today announced that its Chinese joint venture, BOMAY Electric Industries Company, Ltd. (“BOMAY”), received orders for 40 control systems to be used for new Chinese domestic drilling rigs. Ten units will be shipped prior to next year’s Chinese New Year in February and the remainder will be shipped by July 2019. The estimated value of the order is approximately US$1 million for each system. AETI has the second largest ownership in the JV at 40%, with 51% held by Bomco, a wholly owned subsidiary of the China National Petroleum Corporation.
Mr. Cheng Bo, General Manager, said he and his team are very proud to be recognized as a leader in the electric control systems business for oil drilling land rigs, and to be chosen to produce these systems to help develop domestic Chinese oil and gas fields. Mr. Cheng Bo also added that as part of the domestic development of Chinese oil and gas resources, BOMAY has designed and built one 2,500 HP and one 3,000 HP medium voltage drives for fracking pumps. These units valued at US$500K each, are currently in test. Also, BOMAY recently designed and built a 2000 HP direct drive draw works for retrofits of old and new drilling rigs. Value for each system is approximately US$700K, which is also currently in test. Future significant orders are expected for both products.
AETI also announced a large FPSO (Floating, Production, Storage, and Offloading) vessel decommissioning project with its subsidiary M&I Electric Brazil. The project is expected to last up to 24 months and reinforces the company’s market strategy to move into the offshore oil production segment. “We are glad to help our customers in this decommissioning project in a safe and environmentally responsible way,” said Jose Octavio-General Manager of M&I Electric Brazil. Revenues are expected to be US$1.5-2.0 million by the end of the project.
American Electric Technologies, Inc. (NASDAQ:AETI) is a leading provider of power delivery solutions to the global energy industry. AETI is headquartered in Houston and has global sales, support and manufacturing operations in Rio de Janeiro, Macaé and Belo Horizonte, Brazil. In addition, AETI has minority interest in a joint venture in Xian, China. AETI’s SEC filings, news and product/service information are available at www.aeti.com.
Forward Looking Statements
This press release contains forward-looking statements, as defined in Section 27A of the Securities Exchange Act of 1934, concerning anticipated future domestic and international demand for our products, and other future plans and objectives. While the Company believes that such forward-looking statements are based on reasonable assumptions, there can be no assurance that such future revenues, profits, plans and objectives will be achieved on the schedule or in the amounts indicated. Investors are cautioned that these forward-looking statements are not guarantees of future performance. Actual events or results may differ from the Company’s expectations, and are subject to various risks and uncertainties, including those listed in Item 1A of the Form 10-K filed with the Securities and Exchange Commission on March 29, 2018. The Company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future events make it clear that any of the projected results expressed or implied herein will not be realized.