Matrix Composites & Engineering Wins New Drilling Riser Buoyancy Contract
MATRIX COMPOSITES & ENGINEERING LIMITED (MCE) Share Update January 2025 Tuesday 14th
Matrix Secures A$7 Million Drilling Riser Buoyancy Contract
Matrix Composites & Engineering Ltd has announced a significant new contract for a deepwater drilling riser buoyancy system, highlighting its continued growth in the subsea buoyancy market.
Instant Summary:
- Matrix awarded A$7 million contract by Stena Drilling.
- Contract involves supply of Deepwater Drilling Riser Buoyancy System.
- Manufacturing to occur at Henderson, Western Australia facility.
- Delivery expected by June 2025 and first half of FY26.
- Follows recent A$21m to A$23m SURF market contract.
Contract Details
Matrix Composites & Engineering Ltd, a leader in composite and advanced material technology solutions, has secured a new purchase order from Stena Drilling. This order is valued at approximately A$7 million and involves the supply of a Deepwater Drilling Riser Buoyancy System. The equipment will be manufactured at Matrix's state-of-the-art facility in Henderson, Western Australia.
The contract includes buoyancy modules and riser system modifications for an upgrade on an existing Stena Drilling rig. Matrix plans to complete and deliver about half of the order by the end of June 2025, with the remainder to follow in the first half of FY26. This timeline aligns with the company's fiscal year planning and production capabilities.
Market Context
This contract award is a testament to the ongoing activity and demand in the subsea buoyancy market. It follows Matrix's recent success in securing a contract in the Subsea Umbilicals, Risers, and Flowlines (SURF) market, valued between A$21 million and A$23 million, announced in late November 2024.
Matrix's CEO, Aaron Begley, emphasized the company's strong market position and ability to meet the growing demand for replacements and upgrades in the drilling sector. With over $1 billion of syntactic foam buoyancy delivered to the sector in the past 15 years, Matrix is well-positioned to capitalize on the recovering drill rig market.
This new contract is expected to positively impact Matrix's financial performance and market position. The A$7 million contract will contribute to revenue growth and strengthen Matrix's reputation as a leading supplier in the buoyancy system market. The continued demand for drilling system upgrades suggests a robust recovery in the drilling sector, which could lead to further opportunities for Matrix.
Investor Reaction:
Analysts are likely to view this contract as a positive development for Matrix, reinforcing its growth trajectory and market leadership. The ongoing recovery in the drilling sector and Matrix's strategic positioning are expected to bolster investor confidence.
Conclusion:
Matrix's new contract with Stena Drilling highlights its continued success in the subsea buoyancy market. Investors should watch for further developments and consider the potential long-term benefits of Matrix's expanding contract portfolio.