MATRIX Composites & Engineering has signed a $6 million deal for drilling riser buoyancy products to be installed on a new semi- submersible drilling rig currently being built at a shipyard in Dalian, China.
Scheduled for delivery in the second half of the 2016 calendar year, the buoyancy products are Matrix’s third major order for a Chinese shipyard, company chief executive Aaron Begley said.
“Our ability to win new clients and continue growing market share in the depressed oil price environment demonstrates our reputation
as the clear leader for drilling riser buoyancy products,” he said.
The news came as Matrix announced it would sell its former engineering workshop at Malaga for $3.25 million in a deal expected to complete in mid-April 2016.
“The majority of services performed at Malaga were consolidated at Matrix’s Henderson complex in 2014-2015 in response to a reduction in demand for engineering and fabrication services,” the company said. “Matrix intends to allocate the majority of proceeds to further reduce term debt, in line with the company’s strategy to de-leverage the business.”
Mr Begley said the workshop, which was formally shut down in the first half of 2016, would help strengthen the company’s balance sheet, adding that it would record a non- cash impairment of $600,000 in its financial statements for the current financial year.
“Our ability to consistently pay down debt over the past few years means Matrix is now close to a net cash position, ensuring we are well positioned to respond to the low oil price environment,” he said.