The Clean TeQ (ASX: CLQ) share price is up 3.85% today after the company announced a new contract. We take a closer look.
The post Why the Clean TeQ (ASX:CLQ) share price is pushing higher today appeared first on The Motley Fool Australia. –
The Clean TeQ Holdings Limited (ASX: CLQ) share price is climbing today after the company announced a new water treatment contract. Shares in the small-cap company are up 3.85% at the time of writing, trading at 27 cents.
The Clean TeQ share price has been on an astounding run over the last year, gaining 107.69%. In doing so, the company has outpaced the All Ordinaries Index (ASX: XAO) return of 37.5% in the same period.
The Clean Teq share price lifted this morning after the company advised that it had been awarded a new contract for a water treatment plant upgrade in Oman.
The company will upgrade the existing ‘DESALX’ technology plant that is used for the purification of water.
Clean TeQ said by treating the waste, the plant operator would be able to recycle a significant proportion of water for re-use in the processing plant rather than disposing of it.
As announced in early January, the company was awarded a contract to undertake the design to upgrade the water treatment plant in Oman. However, changes in salt and arsenic loads have resulted in the need for further upgrades.
The upgrade will focus on neutralising the waste components mentioned above and precipitating contaminants for easier recovery. This will enable the plant to decrease its water usage and generate lower brine levels for disposal.
With the initial contract near its completion, the company has now been awarded a further agreement in excess of $1 million to upgrade the project again. It is proposed that Clean TeQ also supply construction oversight and commissioning support, but this has not been included in the current scope and costing.
Commenting on the contract, Clean TeQ managing director Sam Riggall said:
We have demonstrated our capability in designing, constructing and commissioning our highly effective proprietary water purification systems in a range of different applications.
As we move towards the proposed demerger of our water business later this year, it is pleasing to see that we are making good progress on our goal of growing revenues.
At the current Clean TeQ share price, the company has a market capitalisation of $230.3 million.
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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.