Monday 5 July 2021

Triumph Subsea Services would like to advise that it has formally cancelled the Letter of Intent that was issued to InfraStrata plc on the 9th December 2020. The Letter of Intent was for one firm and one optional ST designed 200m x 35m Windfarm Development Vessels (WDV). The WDV is a turn-key solution for floating windfarm installations, cable laying and providing marine services for offshore carbon capture and green hydrogen projects. Following Triumph's business model of building and operating vessels with maximum local content these UK built vessels would have provided numerous employment opportunities for the UK supply chain. These opportunities would also have existed during the vessels execution of UK renewables projects as the vessels would have been crewed and operated by UK personnel.

For clarity and in respect of the NDA signed between the parties, Triumph will only emphasis points that are already in the public domain and or have actually been declared and posted by InfraStrata on the London Stock Exchange website.

Triumph’s decision to cancel the LoI has not been taken lightly, however due to various reasons such as the three points referenced below, left Triumph with no other option.

Quoting a section of InfraStrata’s stock exchange release from the 10th December 2020:

“With the parties having signed this LoI, the next steps towards a binding contract will involve, inter-alia, analysis of the detailed design packages, agreement of timelines and milestones from fabrication to delivery and, finally, placing of the necessary financing structures by Triumph and its partners with Harland & Wolff. Once contracted, each vessel would be expected to generate revenues for Harland & Wolff of between £340 million and £360 million over the 24-30 month period of fabrication, followed by additional revenues if further through-life support contracts are secured.”

To this date Triumph have not received any formal commercial quotation and or vessel build schedule, therefore based on not receiving this vital information that forms part of a shipbuilding contract, no contract could be agreed or signed. Furthermore without a formal commercial quotation and build schedule no discussion could proceed forward with any of the financial institutions that had been supporting Triumph with this project. Triumph did however have a Teams call and video presentation with Harland & Wolff on the 11th of March 2021 wherein an ad-hoc presentation was shown to Triumph, the presentation consisted essentially of a Very Rough Order Magnitude price and an equally rough schedule. The VROM and rough schedule was significantly different to the £340 million and £360 million over the 24-30 month periods agreed as per the LoI.