Blackline Receives First Purchase Order from ADNOC

Blackline Safety Corp. said that the Abu Dhabi National Oil Company (ADNOC) placed its first purchase order under a multi-year agreement for up to 28,000 Blackline devices, along with services.

The initial order includes around 1,000 G6 wearable single-gas detectors with four years of service and 1,200 Blackline location beacons to enhance location signals inside ADNOC facilities, Blackline said in a news release.

The G6 device detects hazardous gas and provides real-time location data, while the beacons enhance the location accuracy, the company said.

“This first order under the new agreement with ADNOC is an important milestone in our multi-year growth strategy in the Middle East,” Andrea Lamond, vice president for growth operations for Blackline. “Through our partnership with ADNOC and Al Masaood, we are investing in the region and delivering advanced connected worker technology that helps protect workers while improving operational efficiency”.

Blackline said its footprint in the Middle East has “grown significantly over the past three years” with connected safety deployments across energy companies in the region.

Financial and Operational Updates

In the second quarter, Blackline reported total revenue of CAD 35.9 million, a 14 percent year-over-year increase.

The growth was driven by a 31 percent increase in service revenue to CAD 21.9 million, “reflecting robust demand for Blackline’s connected software services,” which increased 32 percent to $19.2 million, along with rentals, which grew 20 percent to $2.7 million, the Calgary-based company said in its most recent earnings release.

Second-quarter product revenue declined 5 percent year-over-year, driven by geopolitical uncertainty that delayed deals in North America and internationally, the company said.

According to Blackline, most of the company’s products are United States–Mexico–Canada Agreement (USMCA) compliant and exempt from tariffs currently in place on goods shipped to the USA from Canada.

As a result, Blackline “remains well-positioned to expand its business with its comprehensive suite of connected safety wearables and area monitors,” the company said.

Blackline also stated that the uncertainty surrounding tariffs may slow the global investment environment and impose additional costs on the business, with potential negative impacts on revenue and earnings.

Blackline Safety describes itself as a company “driving innovation in the industrial workforce through IoT (Internet of Things)”. With connected safety devices and predictive analytics, the company helps customers move towards zero-safety incidents and improved operational performance. Blackline provides wearable devices, personal and area gas monitoring, cloud-connected software and data analytics in more than 75 countries.

Earlier in the year, ADNOC entered into multiple agreements with U.S. energy majors for a potential $60 billion of U.S. investments into United Arab Emirates (UAE) energy projects.

The agreements include a field development plan with ExxonMobil and INPEX/JODCO to expand the capacity of Abu Dhabi’s Upper Zakum offshore field through phased development, according to an earlier statement.

ADNOC said it signed a strategic collaboration agreement with Occidental Petroleum targeting to boost the production capacity of Shah Gas field’s capacity to 1.85 billion standard cubic feet per day (Bscfd) of natural gas from 1.45 Bscfd, as well as accelerate the deployment of advanced technologies in the field.

To contact the author, email rocky.teodoro@rigzone.com

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.