Maritime solutions and services provider Ocean Power (NYSEMKT:OPTT) – which does business as OPT – announced a partnership with Unique Group. Based in the United Arab Emirates (UAE), Unique is a global innovator in subsea technologies and engineering but delivers products and services for several industries. Fundamentally, the deal represents a credibility extension for OPTT stock, which has been attempting a comeback.
According to the accompanying press release, OPT and Unique will work together to deploy the former entity’s WAM-V unmanned surface vehicles (USVs) in the UAE. The deal also extends to other countries in the Gulf Collaboration Council region. Per OPT’s website, WAM-V stands for Wave Adaptive Modular Vehicle, offering autonomous operations for commercial, scientific or defense-related maritime applications.
Primarily, the central theme behind the deal is to leverage OPT’s commercially available vehicles with Unique’s leadership in the UAE’s offshore energy industry. Ultimately, this partnership may help accelerate the adoption of USVs in the region.
Ocean Power CEO Philipp Stratmann expressed optimism about the deal. “Working with Unique Group will further accelerate our efforts to deploy USVs globally. We are very excited about the prospects of expanding into the UAE and applaud the local industry’s forward thinking in adopting autonomous technologies,” the head executive remarked.
OPTT Stock Continues to Charge Higher
On the other end of the deal, Unique’s Global Head of USV Jack Dougherty signaled excitement at the strategic partnership. “By leveraging our extensive regional experience and advanced engineering capabilities, we are committed to helping OPT develop a GCC-specific WAM-V 22. This next generation vessel will be designed to meet the regions stringent safety regulations while ensuring environmentally conscious and efficient operations,” said Dougherty.
Following the announcement, OPTT stock shot dramatically higher. At one point, shares gained about 90% before paring back some of the profit in the early afternoon session.
Still, the overall picture within the past several days has been decisively enthusiastic. A week earlier, OPT announced it achieved preferred status supplier standing for its wave-powered buoy. This industrial equipment will be set for delivery in the Middle East.
In addition, Ocean Power reached an agreement in principle with a U.S. government agency for multiple WAM-V deliveries. Notably, the terms represented a sole source contract, suggesting urgent demand for the autonomous vessels.
Since the start of the year, OPTT stock is now up about 50%. In the trailing 52 weeks, it’s still down approximately 18%. Nevertheless, the vertical nature of the equity is making speculators pay close attention.
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On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
