Matrix Composites & Engineering (ASX:MCE) wins $44m SURF buoyancy contract in Brazil

• Matrix Composites & Engineering (MCE) lands a $44 million standalone purchase order from Saipem to supply a Subsea Umbilicals, Risers and Flowlines (SURF) product
• The order includes the production and delivery of SURF distributed buoyancy modules for a floating production storage and offloading (FPSO) system within a project in Brazil
• Matrix CEO Aaron Begley says the “significant” contract award signifies a new phase of growth for the company
• With the new contract, Matrix has secured $77 million worth of contracts through the end of the 2024 financial year
• Shares in Matrix closed 19.57 per cent higher at 27.5 cents on Wednesday afternoon

Matrix Composites & Engineering (MCE) has landed a $44 million standalone purchase order from oilfield services company Saipem to supply a Subsea Umbilicals, Risers and Flowlines (SURF) product.

The order includes the production and delivery of SURF distributed buoyancy modules for a floating production storage and offloading (FPSO) system within a project in Brazil.

The project will utilise Matrix’s carbon fibre syntactic foam technology and distributed buoyancy modules and clamping systems, with all equipment to be built in the company’s facility in Henderson, Western Australia.

Manufacturing is scheduled to begin during the first quarter of the 2024 financial year, with full delivery slated for within that financial year.

Matrix CEO Aaron Begley said the “significant’ contract award signified a new phase of growth for the company.

“We now have approximately $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,” Mr Begley said.

“We are also optimistic about further opportunities coming out of the South American market for Matrix ahead.”

This latest order builds on Matrix securing a $16 million SURF order in August, which the company said would open up similar opportunities in the South American market.

Prior to that award, Matrix also secured a purchase order in June, worth approximately $14 million, for the supply of a Deepwater Drilling Riser Buoyancy System in Asia.

Shares in Matrix closed 19.57 per cent higher at 27.5 cents on Wednesday afternoon.