Engineering-enabled technology company Synertec Corporation Ltd (ASX:SOP) says it is making strides in the renewable energy sector with its Powerhouse microgrid system.
In its recent quarterly report, the company said that its flagship microgrid system continued to demonstrate superior operational performance when compared to traditional diesel, gas and hybrid generation systems.
Substantial global addressable market
Powerhouse is in commercial operation, and Synertec says it is delivering reliable, affordable and sustainable 100% renewable power to remote sites, with a substantial global addressable market, particularly in the Australian coal seam gas sector.
Client Santos Ltd, for example, has confirmed its intent to issue purchase orders for an additional two Powerhouse systems to be delivered in the 2024 financial year after an extensive procurement process.
The company’s engineering division continues to secure new contracts, increasing work in hand, providing a solid foundation for ongoing growth and technology development.
During the quarter, Synertec also achieved ISO27001 Information Security Management System certification and signed an exclusive partnership agreement with Siemens to provide water industry control systems.
Synertec's technology, including its intellectual property (IP), is cultivated in-house, which it says allows for rapid market entry and innovation. This approach underscores a commitment to providing immediate solutions for a sustainable future.
The company boasts a diverse team of more than 100 engineers, offering multidisciplinary expertise to support technology development and provide solutions for tier-one blue-chip customers in various sectors, including energy, critical infrastructure, water and advanced manufacturing.
Financials
The company's financial performance for the period shows group revenue ranging from $4.2 million to $4.6 million, reflecting a notable increase of some 10% compared to the previous corresponding period.
Strong gross margins are attributed to a shift away from fixed-price contracts in the engineering business and ongoing cost and productivity initiatives across the company.
The group's net cash position as of September 30, 2023, stands at around $7 million, with about $2 million in inventory for future Powerhouse unit assembly.
Receivables and work in progress have also increased in the vicinity of $1 million, reflecting the company's growth and revenue generation.
Synertec's engineering capabilities support a scalable, low-risk assembly pathway for Powerhouse.
The company says it is well-positioned to meet growing demand driven by carbon reduction mandates and remains committed to accelerating the rollout of Powerhouse while continuing to grow its profitable engineering business.