Pointerra Ltd (ASX: 3DP) shares have experienced a remarkable surge, climbing 67% to 16 cents, following the announcement of a significant contract win. The geospatial data technology company secured a ten-year, US$15 billion contract with Entergy Corp (NYSE: ETR), thereby attracting the attention of investors.
Entergy, a Fortune 500 company with a market value of US$21.9 billion (A$32.7 billion), provides power to approximately 3 million customers across Arkansas, Louisiana, Mississippi, and Texas. The Louisiana-based energy utility company plans to invest US$15 billion in a grid resilience capital expenditure (CAPEX) program.
Pointerra’s Pointerra3D product will play a crucial role in this venture. It will be used to process and analyze 3D LiDAR and 2D imagery, enabling the creation of a digital twin of Entergy’s electricity network. Consequently, Entergy and its engineering, procurement, and construction (EPC) partners will utilize the world-first quick load electric grid assessment tools provided by Pointerra3D. These tools will allow for the rapid evaluation and prioritization of work, ensuring cost-effectiveness and efficiency.
During the course of the program, Pointerra anticipates inspecting and analyzing up to 4 million poles using Pointerra3D. While the precise rate for this program has not yet been determined, previous rates ranged between US$20 and $40 per pole. As a result, the contract has the potential to generate between US$80 million and US$160 million in revenue over its lifespan. Revenue is set to commence during FY 2024.
In the wake of this news, investors have flocked to purchase Pointerra’s shares, driving up the share price by a significant margin. The contract with Entergy represents a significant achievement for Pointerra and underscores the value of its innovative 3D geospatial data technology.
By securing this contract, Pointerra has positioned itself as a key player in the rapidly expanding field of geospatial data analysis. The company’s cutting-edge Pointerra3D product is expected to revolutionize grid assessment and management, providing a high-tech solution that can drive efficiency and cost savings.
While Pointerra’s shares have slightly retraced from their initial spike, they remain up by an impressive 67%. The market’s response to the contract win highlights the level of confidence and excitement surrounding the company’s prospects.
Moving forward, Pointerra is well-positioned to leverage its technological expertise and expand its presence in the geospatial data industry. The contract with Entergy serves as a testament to the company’s capabilities and opens up significant opportunities for growth and future collaborations.
Investors will undoubtedly keep a close eye on Pointerra’s progress as the company continues to develop and deploy its innovative solutions in the geospatial data sector. As the market for such technologies expands, Pointerra stands to benefit and solidify its position as a trailblazer in the industry.
