SRJ Technologies Group PLC (ASX:SRJ) is continuing to build and convert a significant sales pipeline in providing weld-free coupling and leak containment solutions targeting oil, gas, LNG and mining industries.
The company has a portfolio of proprietary asset integrity products protected by seven patent families with 28 granted patents in 25 countries.
Distribution: alliances and relationships
- SRJ has signed a global collaboration agreement with EnerMech, for the development, marketing and installation of SRJ products to customers in Australia, Europe, North America, UAE and Korea
- EnerMech is a global business providing mechanical, electrical and instrumentation services to the oil and gas industry
- Minimum sales targets to ensure jurisdictional exclusivity
Mitsui & Co
- Strategic alliance with Mitsui who has also become a shareholder in the SRJ IPO
- Mitsui has a significant presence in Australia having invested A$15 billion in Oil & Gas, Mining and FPSO (floating production storage and offloading) assets
- Mitsui has made introductions to SRJ including MODEC and Woodside which have initiated purchase orders
- Mitsui is working with SRJ to actively promote products globally
- SBM Offshore engaged SRJ for Asset Integrity consulting in late 2020 to support the engineering design of new standardised FPSO vessels
- Initial order value is £60,000 (A$113,000) with further work currently under negotiation which has the potential to double this value
- SRJ expertise will support engineering design of generic FPSO vessels as part of the SBM Fast4Ward® Program
- Memorandum of Understanding signed with Australian company Piping Specialty Supply Service Ltd (PSSS)
- PSSS to add SRJ BoltEx® Bolt Exchange Flange Clamp to rental equipment and actively market to client base
- Includes minimum revenue targets for 2021 with initial A$50,000 order issued for first 3-month rental term
- Revenue target for rental income under the MoU is A$500,000 (CY2021)
Recent customer wins
MODEC (a subsidiary of Mitsui & Co)
- March 2021 – received first purchase order from MODEC a global supplier and operator of offshore floating platforms
- April 2021 – secured a purchase order from MODEC to develop a detailed work scope for a major hot bolting campaign using the SRJ BoltEx®
- July 2021 – successfully secured a purchase order for a bolting campaign on a MODEC FPSO vessel
- March 2021 – received its first purchase order from Woodside for an eight-week lease campaign
- April 2021 – received first order in Saudi Arabia through ZOMCO agency agreement. The order will provide SRJ asset integrity solutions to SABIC in Jubail Industrial City
- December 2020 – ongoing engagement with SBM Offshore on various design elements for their new fleet of FPSO vessels. Also assisting with the review of EPRS on their existing fleet
- July 2021 – won a consulting contract with SBM Offshore. SRJ’s expertise will support engineering design of generic FPSO vessels as part of the SBM Fast4Ward® Program
Hydrogen gas solution
SRJ submitted a formal grant application in April 2021 for a Joint Industry Project (JIP) for the development of hydrogen compatible pipe connection technologies that will see SRJ partnering with Curtin University and SixDe Engineering for the project.
A decision on this grant application has been delayed until August 2021.
SRJ believes it has the only active technology to resolve hydrogen-environment embrittlement (HE) issue.
SRJ has launched a new digital platform SRJAnalytics allows asset management, maintenance and inspection teams to standardise all activities, centralise data capture and provide instant reporting related to the condition of each of their piping assets.
SRJAnalytics is currently being tested and improved in coordination with a large FPSO operator.
SRJ has outsourced manufacturing to allow the company to focus on sales.
The company has existing manufacturing relationships (two in Australia, one in UK) to service current demand in Australia and Europe.
SRJ is also engaged in ongoing discussions with further manufacturers in other regions.
- Addressing maintenance delays – during FY2020 and H1 2021 the industry has been impacted by maintenance delays from asset owners who look to push out maintenance work at each opportunity. This has created opportunity for more efficient solutions like SRJ products to address the significant ‘maintenance backlog’.
- Land and expand – EPRS (emergency pipeline repair system) solutions are an excellent tool for introducing SRJ business to a customer and gaining commercial traction. If the company can help customers with their most difficult maintenance jobs, it provides a great catalyst to build an on-going relationship with them thereby increasing the opportunity to cross-sell SRJ solution to them.
- Seamless solutions – SRJ’s approach has shifted to a seamless solutions-based approach compared to being a products-only company. The consulting arm is a fundamental cornerstone of SRJ’s problem solving capability for its clients which leads to future sales of products.
- Research and development – SRJ is committed to invest in research and development. The company will continue to investigate areas of importance for customers to provide them with alternatives to fit different projects and requirements.
SRJ CEO Alex Wood tells Proactive's Andrew Scott the company’s immediate focus is on converting its sales pipeline which he says is now happening: