Cancelled Matrix contracts back on

Perth-based manufacturer Matrix Composites & Engineering has had two previously-cancelled contracts restored, but they will be delayed by three years.

Aaron Begley-led Matrix told the market in February that it had received a cancellation notice for two contracts worth a combined $US21.8 million from an unnamed shipyard customer.

The contracts were orders for buoyancy riser systems, each worth $US10.9 million.

“After a period of discussions between Matrix and its customer, Matrix is pleased to advise that it has been notified that the customer has reached an agreement with Ocean Rig as the end user for delivery of the first system to be delayed until January 2019 in lieu of cancellation of the order,” Matrix said today.

“The second order also remains on foot and is subject to an 18-month standstill.

“This follows recent statements made by Ocean Rig indicating that neither project has been cancelled and that its newbuild contracts were continuing.”

Matrix said discussions were continuing with regard to delivery and payment timing.

Shares in Matrix were 12.9 per cent lower to 47 cents each at the close of trade.