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Perth-based Matrix Composites & Engineering (ASX: MCE) has won a $44 million contract to supply subsea umbilical, riser and flowline (SURF) products to a major deepwater project in Brazil operated by oil giant Saipem. Have done
The contract covers the production and delivery of SURF distributed buoyancy modules for floating production storage and offloading (FPSO) systems and will utilize Matrix’s state-of-the-art carbon fiber syntactic foam technology and certified module and clamping systems.
The module is designed to support the project’s subsea production riser system, which transfers petroleum from the seafloor to the FPSO.
They are designed to operate in water depths of more than 2000 meters.
All equipment will be manufactured using Matrix’s existing capacity at its advanced composites production facility in Henderson, with construction beginning during the first quarter of fiscal 2024.
Full delivery of the project is expected in the same year.
new stage of development
Aaron Begley, the chief executive officer of Matrix, said the contract signaled a new phase of growth for the company.
“Our ability to systematically capitalize this year on a resurgence of activity in traditional offshore buoyancy markets culminated in this very important buy order,” he added.
“We now have approximately $77 million secured through the end of the 2024 fiscal year, which gives us a strong financial platform as we continue to increase our diversification across the energy and resources sectors, and broaden our capabilities in clean energy Huh. renewable.
south american market
The Saipem order follows a $16 million order in August for the supply of SURF modules to offshore specialist contractor Subsea 7 for use in the construction of a deepwater project in South America.
Following this win, Matrix announced that it would begin pursuing similar opportunities in the South American market as logistics disruptions eased between major oil and gas project proponents around the world.
convertible note issue
Earlier this month, Matrix raised $7.48 million in a convertible note issuance to boost its working capital as it brings on new hires and advances its growth strategy.
The note is fully or partially secured and convertible at 35 cents per share, representing a 64% premium to Matrix’s 14-day volume weighted average share price of 21.3 cents.
It has a three-year term to maturity and a 10.5% coupon rate.
“After considering various funding options, we are pleased to have reached this agreement with the team at Collins Street Asset Management, which supports our long-term growth vision,” said Mr. Begley.
“The funding will enable us to deliver on our strong pipeline of current work and gives us the financial strength to target the next stage of business development.”
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