Matrix Strengthens Market Position Amid Drilling Sector Recovery with New Contract

Matrix Expands Its Footprint in Deepwater Drilling

Matrix Composites & Engineering Ltd (ASX: MCE) has announced a significant new contract win, securing a purchase order valued at approximately A$7 million from Stena Drilling. The contract involves the supply of a Deepwater Drilling Riser Buoyancy System, a critical component for offshore drilling rig upgrades. This award underscores Matrix’s continued prominence as a trusted supplier in the subsea buoyancy market.

The buoyancy modules and associated riser system modifications will be manufactured at Matrix’s advanced composites production facility in Henderson, Western Australia. The delivery schedule is split, with roughly half of the order expected to be completed and shipped by the end of June 2025 (FY25), and the remainder during the first half of FY26. This phased delivery aligns with the upgrade timeline of an existing Stena Drilling rig, highlighting Matrix’s role in supporting ongoing rig modernization efforts.

Building on a Strong Backlog and Market Momentum

This latest contract follows closely on the heels of a larger award announced in November 2024, where Matrix secured a SURF (Subsea Umbilicals, Risers and Flowlines) market contract valued between A$21 million and A$23 million. Together, these contracts reflect a robust pipeline and growing demand for subsea buoyancy solutions, driven by improving market conditions in the offshore drilling sector.

Matrix CEO Aaron Begley highlighted that the improved market environment for drillers is fueling aftermarket demand for replacements and upgrades. He emphasized Matrix’s strong positioning, noting the company has delivered over A$1 billion worth of syntactic foam buoyancy products to the drilling sector over the past 15 years. This extensive track record lends confidence in Matrix’s ability to capitalize on the sector’s recovery and expanding opportunities.

Strategic Implications and Outlook

The contract award from Stena Drilling not only adds immediate revenue visibility for FY25 and FY26 but also signals a broader strengthening in the offshore drilling market. As drill rig operators invest in upgrades and aftermarket components, suppliers like Matrix stand to benefit from sustained demand growth. The company’s advanced manufacturing capabilities and global footprint position it well to capture further contracts in this niche but critical segment of the oilfield services industry.

While the announcement does not disclose margins or potential follow-on work, the contract’s timing and scale reinforce Matrix’s strategic focus on subsea buoyancy systems. Investors and analysts will be watching closely for additional contract wins and updates on the drilling sector’s trajectory, which remains a key driver of Matrix’s growth prospects.