Matrix Composites & Engineering Ltd (ASX: MCE) has landed a significant contract with Subsea 7 for the supply of subsea umbilicals, risers, and flowlines (SURF) products.
The contract, valued between $21 million and $23 million, marks another milestone for the Australian-based company in the burgeoning SURF market.
The project involves the production of SURF distributed buoyancy modules for an international deepwater, floating production storage and offloading (FPSO) development.
Manufacturing will take place at Matrix’s advanced composites facility in Henderson, Western Australia, with the majority of revenue expected to be recognised in the current financial year (FY25).
This latest contract has boosted Matrix’s secured revenue from the SURF market for FY25 to approximately $60 million, surpassing the full-year figures for FY24.
The company has now secured over $120 million across four projects in recent years, signalling a robust growth trajectory in the strengthening SURF market.
Matrix CEO Aaron Begley expressed optimism about the company’s position and future prospects, stating: “This contract win is another significant achievement for Matrix in the SURF market, where we have been actively targeting opportunities and continue to do so.
“Key customers are expecting busy conditions for the foreseeable future, and we are optimistic about further opportunities.”
The company reports a substantial pipeline of potential projects, with approximately $280 million in competitive quotations yet to be awarded.
Of these, four to six projects valued between $80 million and $140 million are expected to be decided before the end of the 2024 financial year.
As the offshore energy sector continues to show signs of growth, Matrix Composites & Engineering appears well-positioned to capitalise on the increasing demand for SURF products and services in the global market.
