Following a product training session conducted by asset integrity management solution SRJ Technologies (ASX: SRJ) with Baker Hughes’ global engineering team, the latter has announced a commitment to procure SRJ’s BoltEx® flange clamps.
SRJ, a specialised provider of engineering services and containment management solutions, disclosed that Baker Hughes’ initial order amounted to an impressive $231,000. This transaction marks the inception of what is anticipated to be a substantial investment by Baker Hughes, with ongoing negotiations for a second, larger order already in progress.
Chief Executive Officer Alexander Wood said, “Investment by a globally renowned energy provider like Baker Hughes, reinforces SRJ’s position as a world-leading supplier of industry-accredited products. This collaboration is another fantastic addition to SRJ’s portfolio and order book, which continues to grow organically. The contract also opens the door to further discussions with Baker Hughes about larger commercial orders of our product.”
As one of the world’s largest oilfield services companies, Baker Hughes operates in over 120 countries, strongly emphasising addressing the challenges of a net-zero future. The purchase of SRJ’s BoltEx® flange clamps positions Baker Hughes to provide hot bolting services to various offshore and onshore oil, gas, and LNG facilities. This deal signifies a significant business opportunity and sets the stage for a deeper collaboration between SRJ and Baker Hughes as global partners.
In simple terms, flange clamps are devices designed to connect or secure two flanges, flat circular plates commonly used in piping systems. BoltEx’s clamps offer quick installation, immediate replacements and maintain bolt integrity.
This collaboration had its roots in October when Baker Hughes engaged SRJ to train its site engineers in using BoltEx in the field. The training occurred in Malaysia, collaborating with SRJ’s regional partner, EFTECH.
With its product range, the financial performance of SRJ has seen an upswing, with cash receipts in Q3 CY24 reaching $680,000, marking the second-best performing quarter to date. Contracted revenue secured for FY23, as of October 19, 2023, stands at $3.8 million, reflecting a 111% year-on-year growth.
SRJ aims to capitalise on numerous opportunities in the UAE and the wider region, particularly in Qatar, where sizable shutdown work scopes are anticipated in 2024.
In a span of less than a month, SRJ has inked multiple global contracts for BoltEx. Beyond the collaboration with Baker Hughes, SRJ made significant strides on December 6 by entering the US oil and gas markets with two contracts valued at $225,000. Additionally, a $262,000 contract was awarded by global energy company EnQuest for BoltEx products. Finally, SRJ secured a maintenance campaign contract from Southey Contracting for an FPSO in West Africa, serving a global energy company.
With centuries in the business, Baker Hughes is an attractive collaboration (and a reassuring one at that for shareholders). For 2024, SRJ hopes to lock in more such contracts, expecting to extend existing ones.
Alinda is a Business Reporter for The Sentiment
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