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Synertec Q2: revenue up 15%, 80% year-on-year, consulting revenue doubles, technology developments on-track
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Synertec has reported an increase in its revenue during the December quarter as it continues to advance several key projects for growth.
Diversified clean energy technology company Synertec (ASX:SOP) has reported a circa 15% increase in revenue for Q2 FY22 on the prior quarter in the expected range of $2.8 million-$3.1 million.
Revenue was up around 80% year-on-year with the company reporting consultancy services revenue increased 100% in Q2 FY22.
Synertec has now reported revenue growth in three out of four consecutive quarters with continued strengthening of gross margin.
The company’s net cash at December 31, 2021 was $7.1 million.
Tech developments on track
Synertec’s Technology Business has continued to progress its three environmentally friendly technology solutions to help the global energy industry transition to a low carbon future and reduce its environmental footprint.
Synertec Managing Director, Mr. Michael Carroll said the company has continued to enjoy broad success, achieving important milestones during Q2 FY22.
“In our Technology business, we have been working hard with our partners in the Custody Transfer System and Composite Dry Powder technologies over the past year or so to reach major technological development and commercial milestones, which I am pleased to report were achieved in this quarter,” he said.
The company’s novel Custody Transfer System technology was approved for marine settings by global certification body, DNV in December.
Best in class Custody Transfer System technology
DNV is the world’s leading Classification Society and a recognised advisor to the maritime
industry, providing certification services across multiple sectors including the maritime industry, oil, gas and renewable energy.
The approval was a critical achievement offering Synertec significant potential exposure to growing demand for LNG-fuelled shipping, bunkering and other storage vessels with new marine fuel regulations (IMO2020) driving a long-term transition to less polluting fuels.
Powerhouse Project
During Q2 Synertec continued to undertake work to support the Memorandum of Understanding with leading independent energy producer Santos Ltd (ASX:STO) for its flagship Powerhouse Project.
The Powerhouse Project centres around the design, construction, and field testing of renewable energy systems for the purpose of “remote-site application to CSG well dewatering”.
Powered by solar energy and batteries, the systems also deploy Artificial Intelligence and predictive analytics to “optimise energy efficiency and power delivery.
A stellar solar system
Under the MOU, Synertec will design, construct and field test a prototype solar energy power system.
Key developments during the Period included detailed design close to completion, procurement of all key equipment inputs and commencement of fabrication.
Synertec also reported significant opportunities for this technology across the CSG, energy and resources industries, both nationally and globally and will continue to progress and prove the technology.
Transforming drilling mud
During the quarter, Synertec also entered a licensing deal which will advance progress of Composite Dry Powder (CDP) technology.
The technology can transform waste drilling mud from the oil and gas industry into a non-polluting by-product for making high strength construction materials.
The perpetual and exclusive intellectual property (IP) licence agreement is with Sichuan GreenTech Environmental Technology Co (Green Tech). It allows Synertec to use and commercialise the CDP technology across some of the world’s largest hydrocarbon markets including Australia, Canada, North America, Central America, and South America.
“As these markets are some of the major global energy regions, we see great potential for CDP at scale as an environmental and economical solution to some of the world’s energy production challenges.”
“Synertec is committed to being an impact investment for shareholders and local communities, and to ensuring the company supports its partners in the collective endeavour to improve ESG performance,” Carroll said.
Engineering business
Synertec’s MD, Mr. Michael Carroll said the company’s engineering business continues to grow revenues, with recent contract wins capturing increasing rates of critical infrastructure planning and expenditure across the economy.
“During the quarter we were awarded circa $2 million in various contracts across our target sectors of infrastructure, energy and advanced manufacturing, including Master Services Agreements for project management, automation and design services with long-time customers CSL Limited, Pfizer and Aspen Pharmacare. Synertec is providing important expertise to several of their critical pharma advanced manufacturing projects. We bring decades of experience in pharma and biotech manufacturing, having worked on many of CSL’s facilities since the 1990’s,” he said.
This article was developed in collaboration with Synertec, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
