Tech: BidEnergy gets a boost from new deal with Origin; shares spike 41pc
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Energy tech company BidEnergy (ASX:BID) has been on a rollercoaster the last couple of years.
But investors cheered this morning after the company confirmed a three-year distribution deal with Origin Energy (ASX:ORG).
The announcement sent BID shares up nearly 41 per cent higher to 69c — still well below the peak of $1.60 reached in early February.
As part of the deal, BidEnergy’s automated energy management system will be progressively rolled out across Origin’s 14,500 commercial and industrial (C&I) customers, starting in September.
“This announcement is yet another key step forward for BidEnergy’s platform becoming the industry standard for excellence in managing utility bills world-wide,” managing Director Guy Maine said.
Bid’s technology deploys an automated system which helps monitor a given company’s energy expenditure.
The three-year distribution deal means Origin customers will get access to the BidEnergy portal for managing bills and meter data, along with customised usage reports and analytics data.
The company said the deal would drive incremental revenue growth of 12.8 per cent from reported figures as at June 2019.
It follows a successful pilot trial of the program earlier this year. BidEnergy said it expected the rollout to be completed across Origin’s customer base by the end of December.
“Organisations such as Origin Energy with a large and diverse portfolio of C&I customers are ideal partners for our RPA solution,” Maine said.
“We are seeing global interest in aspects of our platform from utility companies, energy brokers, and other market participants where our RPA solution can solve unique data management challenges.”
There was a spate of earnings reports as the June reporting season rolls on. Among the notable tech players with FY19 results was fintech lender Prospa (ASX:PGL), which reported a reduction in funding costs, and earnings results that came in above its prospectus forecasts. The stock is back trading around $4.40, after trading at a discount to its June listing price in the early going.