Bhagwan Marine secures six-year extension on Port of Melbourne contract

Bhagwan Marine’s six-year extension of its contract to provide marine maintenance services to the Port of Melbourne is valued at $6m per year.

Bhagwan Marine has extended its contract with the Port of Melbourne by six years. Pic: Getty Images

• Bhagwan Marine extends existing long-term contract with the Port of Melbourne by six years

• Extension is valued at $6m per annum and covers delivery of marine maintenance services

• Company will also have the potential to participate in other capital works programs for the port

Special Report: Marine services provider Bhagwan Marine has secured a six-year extension to its long-term contract with the Port of Melbourne.

The contract, which is valued at ~$6m per year, will continue until June 30, 2030.

It covers the delivery of marine maintenance services, including fixed and preventative maintenance, reactive and variable services, minor capital works for the port’s marine structures and aids to navigation.

There is also potential for Bhagwan Marine (ASX:BWN) to participate in other capital works programs for the port.

This contract marked the company’s entry into Melbourne and the greater Victorian market.

Its extension reflects the company’s strong operational performance and the strength of its partnership with the Port of Melbourne.

It also provides a platform for further expansion into emerging growth markets, including oil and gas decommissioning and offshore wind.

“We’re proud to continue supporting the Port of Melbourne in managing its critical marine infrastructure,” BWN managing director Loui Kannikoski said.

“This extension reflects the capability of our team and operational excellence and the trusted relationship we’ve built over many years.”

Strong operating performance

The extension increases the likelihood that BWN will continue to deliver a strong financial performance like the one it delivered for H1, FY2025.

During this period, it achieved record revenue and net profit of $154.1m and $6.8m, respectively.

The company also slashed net debt from $81.4m to $11.5m thanks to funds allocated from its $80m initial public offering at 63c per share in July 2024.

In early March 2025, BWN said its outlook for FY2025 remained strong with activity levels and demand expected to be driven by ongoing demand from major energy companies in the Northern Territory, diversification opportunities within the subsea sector, expansion and diversification opportunities within the larger vessel market in northern Australia and increasing defence sector services enquiries at the Henderson Marine Precinct.

Watch: Bhagwan's Loui Kannikoski drops by the Stockhead TV studio

This article was developed in collaboration with Bhagwan Marine, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Bhagwan Marine secures six-year extension on Port of Melbourne contract