Underwater systems composite manufacturer Matrix Composites & Engineering has continued its turnaround posting an underlying EBITDA for the first half of $1.2 million, a $3.4 million improvement on the lost recorded in the previous corresponding period.
The manufacturer of underwater buoyancy systems for the offshore oil and gas sector saw revenue increase from $11.3 million in the first half in 2018 to $22.6 million in the latest half.
The Henderson, Western Australian company improved its net loss as a result from $5.3 million to $4.2 million in the latest half.
The improvement came as the market for riser buoyancy systems improved, new products made an impact and it sold its first riser systems into the Middle East.
Matrix also completed the sale and leaseback of its Henderson facility, generating cash of $20 million to give it greater financial flexibility.
The company commented: “This is particularly important when traditional lines of debt finance have not been available in the sector in recent times.”
Matrix CEO Aaron Begley said inquiries for the company’s oil and gas products were translating into increased revenue and positive underlying earnings.
He said: “Pleasingly our core riser buoyancy business underpinned this revenue growth, the company’s other oil and gas products also had a very promising half.”
The company’s new LGS product (pictured), which offers reduced drag allowing greater productivity for underwater oil and gas systems, was gaining customer interest, with a $3 million order recently delivered.
Begley said the company was targeting a sales pipeline of $50 million with tenders likely to be awarded in the current half.
The current order book is worth $10 million.
“We are seeing positive momentum for Matrix in the defence sector and there are opportunities to utilise our unique expertise in advanced materials to service the operations of Australian resource companies in both the LNG and mining sectors.”
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