Argan Subsidiary Secures $100M Power Plant Project
Ticker: AGX · Form: 8-K · Filed: May 10, 2024 · CIK: 100591
| Field | Detail |
|---|---|
| Company | Argan INC (AGX) |
| Form Type | 8-K |
| Filed Date | May 10, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 2 min |
| Key Dollar Amounts | $0.15 |
| Sentiment | bullish |
Sentiment: bullish
Topics: contract-award, construction, power-generation
TL;DR
Argan's Gemma Power Systems lands $100M deal for new gas plant, starts Q3 2024.
AI Summary
Argan Inc. announced on May 3, 2024, that its subsidiary, Gemma Power Systems, has been awarded a new project with an estimated value of $100 million. This project involves the engineering, procurement, and construction of a natural gas-fired power plant. The project is expected to commence in the third quarter of 2024.
Why It Matters
This significant contract award for Gemma Power Systems is expected to contribute positively to Argan Inc.'s revenue and profitability, demonstrating continued growth in the power generation sector.
Risk Assessment
Risk Level: medium — While the contract is positive, the construction and operational risks associated with large power projects can be substantial.
Key Numbers
- $100.0M — New Project Value (Awarded to Gemma Power Systems)
Key Players & Entities
- Argan Inc. (company) — Registrant
- Gemma Power Systems (company) — Subsidiary awarded contract
- $100 million (dollar_amount) — Value of new project
- May 3, 2024 (date) — Report date
- third quarter of 2024 (date) — Project commencement
FAQ
What is the specific nature of the new project awarded to Gemma Power Systems?
The filing indicates the project involves the engineering, procurement, and construction of a natural gas-fired power plant.
When is the new project expected to commence?
The project is expected to commence in the third quarter of 2024.
What is the estimated value of the new project?
The estimated value of the new project is $100 million.
Which subsidiary of Argan Inc. received this contract?
Gemma Power Systems, a subsidiary of Argan Inc., was awarded the new project.
What is the reporting date of this 8-K filing?
The earliest event reported is dated May 3, 2024, which is also the date of the report.
Filing Stats: 552 words · 2 min read · ~2 pages · Grade level 12.5 · Accepted 2024-05-09 17:35:11
Key Financial Figures
- $0.15 — e on Which Registered: Common Stock, $0.15 Par Value AGX New York Stock Exchan
Filing Documents
- agx-20240503x8k.htm (8-K) — 46KB
- 0001558370-24-007655.txt ( ) — 163KB
- agx-20240503.xsd (EX-101.SCH) — 3KB
- agx-20240503_lab.xml (EX-101.LAB) — 16KB
- agx-20240503_pre.xml (EX-101.PRE) — 10KB
- agx-20240503x8k_htm.xml (XML) — 5KB
01. Other Events
Item 8.01. Other Events. Kilroot Power Station On May 3, 2024, the project and construction teams of Atlantic Projects Company UK Limited ("APC"), which is the subsidiary of Argan, Inc. ("Argan") contracted to construct the Kilroot Power Station, a 2x330 MW natural gas-fired power plant located near Belfast, Northern Ireland (the "Kilroot Project"), vacated the construction site having served a contract termination notice. APC shall continue to pursue all of its rights under the contract, including those related to variations, extensions of time and additional payments, and will do so through legal means if necessary. Midwest Solar and Battery Project Gemma Power Systems ("Gemma"), a wholly owned subsidiary of Argan, recently received full notice to proceed with engineering, procurement and construction services for a solar power and battery storage project. Under a limited notice to proceed, as previously disclosed, Gemma commenced early engineering and design activities as well as the procurement of major equipment related to this project. The project will represent 48 MW of electrical power and 6 MWh of energy storage. This project together with two other solar and battery projects for which we received full notices to proceed in January 2024, cumulatively represent 160 MW of electrical power and 22 MWh of energy storage.
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ARGAN, INC. Date: May 9, 2024 By: /s/ Richard H. Deily Richard H. Deily Senior Vice President, Chief Financial Officer, Treasurer and Corporate Secretary