Ocean Power teams up with Unique Group on autonomous vehicle services

Ocean Power Technologies Inc (NYSE: OPTT) rallied over 50% on Tuesday after teaming up with Unique Group on autonomous vehicles in the Middle East. 

Shares of the maritime solutions and services company have now more than tripled versus their recent low. 

Why does it matter for Ocean Power stock?

The strategic partnership with Unique Group will introduce the WAM-V unmanned surface vehicles or USVs of Ocean Power Technologies in the Middle East. 

OPTT is convinced that tapping on the leading position of Unique Group in the offshore energy space of the United Arab Emirates will help ramp up adoption of its unmanned surface vehicles in the region. Philipp Stratmann – the chief executive of Ocean Power Technologies said in a press release today: 

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.

Ocean Power stock does not currently pay a dividend. 

What global head of USV at Unique Group said today

Ocean Power expects teaming up with Unique Group to make maintenance and service more efficient as well. According to Jack Dougherty – the global head of USV at the UAE-headquartered innovator of subsea technologies:

By levering our extensive regional experience and advanced engineering capabilities, we are committed to helping OPT develop a Gulf Collaborative Council (GCC)-specific WAM-V 22.

The next-gen vessel, he added, will meet the stringent regional safety regulations without compromising on operational efficiency. 

Note that OPTT had record revenue in its latest reported quarter. Ocean Power stock is not very widely covered in Wall Street. 

Unique Group deal may help boost OPTT revenue

All in all, teaming up with Unique Group will help Ocean Power expand its reach in the GCC region. The announcement is significant for OPTT since it could boost revenue as the offshore energy industry is known for substantial capital investments. 

In the short-term, however, the partnership may result in higher costs for Ocean Power related to deployment as well as regional compliance. 

The news arrives only days after the maritime solutions and services firm announced a preliminary deal for multiple WAM-Vs for delivery to the U.S. government. CEO Philipp Stratmann said at the time:

Using small USVs like our WAM-V is a cost-efficient force multiplier for the U.S. government and other offshore operators. The dual use nature of our technologies enables us to provide systems to a broad set of customers.

Ocean Power stock is still down massively from its high during the pandemic in 2021.