Synertec Corporation Ltd (ASX:SOP) had a busy half year to December 31, 2023, hard at work delivering its new microgrid technology, the Powerhouse continuous electrical energy system, which began commercial distribution in April last year.
The technology was highlighted in the Sustainability and Climate Report 2023 of mining giant Santos Ltd, which underscores the Powerhouse technology’s effect on its Climate Transition Plan, having improved operational efficiency while reducing the use of fuel gas and emissions by 800 tonnes of CO2e per year.
Following the success of Santos' initial trial, the company intends to install three more Powerhouse solar and battery systems in 2024.
Large, global target market
“We are delighted to see Powerhouse recognised by Santos in their recent Sustainability and Climate Report 2023 report, which is a positive reflection of the technology’s performance and its ability to help Santos efficiently reduce their carbon emissions,” Synertec managing director Michael Carroll said.
“The assembly of the next two contracted assets to be deployed for Santos is on schedule and budget with the units expected to contribute financially in FY24.
“The large target market we see for Powerhouse across both domestic and international markets requiring reliable, continuous, affordable and sustainable baseload power, provides a significant growth opportunity for Synertec and one that has the potential to substantially elevate Synertec’s financial profile in coming years.”
The company also achieved a revenue and income increase of 25% period-on-period (PoP) to $9.1 million for the half year, the result of six years of continuous growth and overall growth of 160% at a compounding annual growth rate (CAGR) of 17%.
The company holds net cash of about $5.3 million as of the end of 2023, more than enough to pursue its commercial objectives given recent revenue growth.
In 2024, Synertec will focus on the delivery of the next two Powerhouse units to Santos, advancing the technology’s deployment opportunities with other customers and working with engaged parties to advance funding solutions for the rollout of any further Powerhouse assets.
The company’s near-term goal is to build on the growth of its engineering business to deliver annual profitability and positive operating cash glow.