Leading Australian composite and advanced material solutions company Matrix Composites & Engineering (ASX:MCE) reports it has secured a ‘substantial’ US$44 million buoyancy contract from multi-national oilfield services company Saipem.
The order is reported to be for the delivery of a Subsea Umbilicals, Risers and Flowlines (SURF) product for a major deepwater project that is being undertaken by Saipem in Brazil.
This project is expected to utilise Matrix’s state of the art carbon fibre syntactic foam technology and API 17L V2.0 certified distributed buoyancy modules and clamping systems.
“Our ability to methodically capitalise on the resurgence of activity in our traditional offshore buoyancy markets in 2022 has culminated in this very substantial purchase order”
It is reported that all equipment will be built using Matrix’s existing capacity at its advanced composites production facility in Henderson, Western Australia, with manufacturing expected to begin during the first quarter of 2024, and full delivery of the order achieved within that financial year.
Commenting on the contract, Matrix Composites and Engineering Chief Executive Officer (CEO), Aaron Begley said: “Our ability to methodically capitalise on the resurgence of activity in our traditional offshore buoyancy markets in 2022 has culminated in this very substantial purchase order.
We are also optimistic about further opportunities coming out of the South American market for Matrix ahead.
We now have about $77 million of secured work carrying us through until at least the end of FY24, which gives us a strong financial platform as we continue to enhance our diversification in the energy and resources sectors, as well as broadening our capabilities into clean energy renewables.
The well-timed and prudent convertible note issue we undertook earlier this month gives us greater working capital muscle to successfully execute this expanding work pipeline and advance our positive growth trajectory.”
The company also notes that this purchase order from Saipem represents another ‘significant’ project coming out of the busy South American market and brings Matrix’s current secured orders to US$77 million, underpinning production for the company through to 2024.
Prior to this award, Matrix secured a US$16 million order in August this year, as well as a purchase order in June 2022, which is worth about US$14 million, for the supply of a Deepwater Drilling Riser Buoyancy System in Asia.
Matrix Composites and Engineering is an ASX-listed company that specialises in the design, engineering and manufacturing of composite and advanced material technology solutions for the oil and gas, civil and infrastructure, resources, defence and transportation industries. The company has gained a reputation as an industry leader with more than 20 years experience and has become a major exporter of Australian goods and services, with customers located all over the world.