Matrix Composites & Engineering Ltd (ASX:MCE) Secures Major Contract
Contract Details
Matrix Composites & Engineering Ltd (ASX: MCE) announced a significant purchase order from Stena Drilling for the supply of a Deepwater Drilling Riser Buoyancy System. This contract is valued at approximately A$7 million and involves buoyancy modules and riser system modifications for an upgrade on an existing Stena Drilling rig. All manufacturing will occur at the Company’s advanced composites production facility in Henderson, Western Australia. Approximately half of the order is expected to be completed and delivered by 30 June 2025, followed by the balance in the first half of FY26.
Market Position and Future Outlook
The new award reflects continued activity in the Subsea Buoyancy market, particularly following Matrix’s previous contract win in the Subsea Umbilicals, Risers, and Flowlines (SURF) market worth between A$21 million and A$23 million. CEO Aaron Begley commented, “Improved market conditions for drillers is increasing aftermarket demand for replacements and upgrades. With a solid recovery in the drilling sector and a strengthening drill rig market, we continue to actively pursue an increasing opportunity pipeline.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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