Kenyan headquartered and listed African focussed support services and logistics company Atlas Development has announce that it has been engaged to provide civil engineering supervisory, advanced life support, security and risk advisory services to a European and North African focussed oil and gas company operating in Western Sahara.
Atlas says the agreement is in line with the Company’s strategy of leveraging its existing profitable operating platform and experience supplying international companies with critical support services and logistics in East Africa, to expand its geographic exposure and profile.
“Being awarded this contract highlights the Company’s ability to execute on new opportunities in additional jurisdictions and is testament to our ability to service our clients’ requirements in a competitive market, whilst still demonstrating a robust margin model and profitable business framework,” says Atlas CEO Carl Esprey.
Atlas Development has been focussed on implementing a defined growth strategy that includes geographic expansion and increasing capability and has in recent months successfully expanded from Kenya and Ethiopia into Mozambique, Tanzania, Djibouti and now Western Sahara.
To date, Atlas Development has been particularly successful in supporting exploration activity; development plans include expanding capabilities so it can provide services throughout the development and production phases of extractive and infrastructure projects. Opportunities to add services are being sought primarily via acquisition and a number of complementary opportunities are currently being evaluated that would provide additional revenue as well as increase critical mass.
The business currently operates across a number of sectors including oil & gas, mining, geothermal and general infrastructure.
“Added to this, we have a strong balance sheet with a cash position of in excess of US$10 million which we aim to utilise to expand our business offering, both organically and through acquisition,” adds Carl.
As a continuing process and to ensure value is created for shareholders Atlas adds it is further evaluating its cost base to streamline its structure and maintain current margins.