30/11/2018 - 15:28

Matrix shares rise on $15.3m contract win

30/11/2018 - 15:28

Bookmark

Save articles for future reference.

Shares in Matrix Composites & Engineering have jumped 16 per cent today to trade at 43 cents each, after the Henderson-based oil and gas services company announced it had won a $15.3 million contract.

Matrix shares rise on $15.3m contract win
The contract is the company’s biggest order in over three years.

Shares in Matrix Composites & Engineering have jumped 16 per cent today to trade at 43 cents each, after the Henderson-based oil and gas services company announced it had won a $15.3 million contract.

Under the contract, which is the company’s biggest order in over three years, Matrix will design and manufacture drilling riser buoyancy modules for Diamond Offshore Drilling, a global contractor headquartered in Texas.

The order is scheduled for delivery to the United States within the first half of the 2019 financial year.

The new contract win follows on from six other buoyancy-related orders Matrix has received since June 2018, totalling approximately $5 million.

Following the announcement, Matrix now has $43 million of manufacturing work across the company’s oil and gas, transport and infrastructure clients.

Matrix chief executive Aaron Begley said the order was a positive indication that the oil and gas sector is recovering.

“We are starting to see more activity, with increasing levels of inbound enquires for both our traditional drilling riser buoyancy product as well as quotations for oil and gas production, maintenance and rectification jobs,” Mr Begley said.

“Riser buoyancy has been impacted in recent years by a sustained period of low capex, with low rig utilisation given subdued oil and gas prices.

“Against this backdrop, a new order in excess of $15 million, which is equivalent to over half of Matrix’s total revenue earnings last financial year, is very positive progress for the company.”

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options