Reading between the lines, SSM will be sharing the work with other providers not just BSA. The market is pricing in that SSM will be generating less revenue compared to the previous Operations and maintenance master agreement (OMMA) that was in place since December 2015.
Regardless this new contract is money in the bag for SSM in the first year. Which is estimated to generate roughly $70 million revenue. For the following years however, the revenue will depend on actual work volumes carried out and that is the unknown.
But as I said in the previous post, SSMs cashflow and balance sheet is too strong to warrant these kind of valuation.
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