Pointerra share price storms 18% higher on energy contract news

The Pointerra Ltd (ASX: 3DP) share price is rocketing today.

Shares in the 3D geospatial data technology company are up 18.4% at the time of writing, after earlier posting gains of more than 22%.

Below are the highlights of the latest energy contract news that looks to be piquing ASX investor interest.

What energy contract news was announced?

The Pointerra share price is surging after the company reported that United States-based Florida Power and Light (FPL) has entered into new contracts for the Pointerra3D Answers storm response solution.

FPL, an existing Pointerra customer, will employ Pointerra3D Answers to support its storm response program, commencing with the 2022 storm season. Major storm response efforts can cost utilities US$100 million per event.

FPL will be able to load pre-storm and post-storm LiDAR collection that will be fully processed by Pointerra3D.

Pointerra said the results would be available within 24 hours for pre-storm collection and six hours for post-storm collection. It stated: “These delivery times are unprecedented in the industry and are only possible through leveraging Pointerra’s proprietary and highly automated AI/ML algorithms and scalable cloud architecture.”

The Pointerra3D Answers will “guide the deployment of FPL crews and resources critical to incident response and the restoration of power to customers”.

Revenue from the new contracts will depend on the number of storm responses and how serious those storms are. Pointerra said revenue has “the potential to be material”, and will be at least US$250,000 per year.

The Pointerra share price also looks to be getting a boost from the report that FPL’s parent company, NextEra Energy, has entered into an enterprise subscription agreement to use Pointerra3D Analytics.

NextEra will employ Pointerra3D Analytics to support its multibillion-dollar greenfield development of solar energy project sites across continental US.

As with the FPL contract, Pointerra said revenue has the potential to be material and will be at least US$250,000 per year.

Pointerra share price snapshot

Despite today’s leap, the Pointerra share price remains down 44% in 2022. That compares to a year-to-date loss of 16% posted by the All Ordinaries Index (ASX: XAO).

Longer-term Pointerra shareholders will have little to complain about, however, with shares up 1,000% over the past five years.

The post Pointerra share price storms 18% higher on energy contract news appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pointerra Limited. The Motley Fool Australia has recommended Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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