Synertec Corporation Ltd has reported its financial results and key achievements for the six months ending 31 December 2024 (FY25 H1). Despite a 7% decline in group revenue and other income to A$8.5 million compared to the previous corresponding period (PCP), the company maintains a strong financial position with net cash of A$7.1 million as of 31 December 2024. Over the past 12 months, Synertec’s rolling group revenue and other income reached approximately A$18.8 million.
The company has drawn A$3.5 million from its Altor facility, leaving A$11.5 million available to support future growth initiatives. Cost-cutting measures implemented during the period have resulted in savings of approximately A$1.1 million, with a total of A$2.5 million in savings expected over the full financial year.
Synertec's Powerhouse division saw a significant boost in performance, contributing A$1 million in revenue for the period—an increase of 137% compared to PCP. Clients are progressing towards a final investment decision (FID) for key Powerhouse procurement opportunities, while the division continues to maintain over 99.9% availability across multiple field installations. Additionally, investigations into supply chain efficiencies indicate potential reductions of more than 30% in battery and fabrication costs.
Despite a challenging business environment, Synertec’s engineering division continues to secure new projects, winning 45 contracts during the period. The company remains focused on leveraging its financial stability and operational efficiencies to drive future growth.
“The hard decisions regarding our workforce previously announced have resulted in cost reductions from Engineering and corporate services of approximately $1.1million for the period and equates to $2.5million annualised.
“However, we continue to invest in building capability and capacity to support Powerhouse and adjacent applications of the technology. We are focused on near-term opportunities with major energy players for a substantial rollout of Powerhouse units, and on this point, we are progressing.”
Financial performance in depth
Synertec reported revenue and other income of $8.5 million for the period, a 7% decline from the prior corresponding period (pcp) (31 December 2023: $9.1 million). This decrease was primarily due to a reduction in fixed-price projects, which fell from $1.9 million last year to $0.9 million this year. The shift in revenue mix aligns with Synertec’s strategy to enhance profitability.
Engineering consultancy services contributed $6.6 million in revenue, down 3% on pcp (31 December 2023: $6.8 million). This decline was offset by a $1.0 million increase in Technology revenue, which surged 137% on pcp (31 December 2023: $0.4 million), driven by contributions from all three Powerhouse units during 1H FY25.
Despite a slowdown in the broader engineering sector, Synertec’s engineering business remains profitable and cash-flow positive compared to the previous period.
Powerhouse Technology
First-Generation Unit Upgraded: The original prototype has been upgraded based on field experience and aligned with second-generation units. It is scheduled for redeployment to a Santos site in Q3.
Second-Generation Units Operational: Powerhouse unit 2 has been operating since September 2024, demonstrating ≥99.9% uptime with high reliability and lower costs. Powerhouse unit 3 has been commissioned and is ready for operation.
Accreditation Milestone: Synertec has submitted the site accreditation dossier to Santos, enabling direct management of future site installations and commissioning. This will streamline deployment, reduce costs, and strengthen Synertec’s competitive advantage.
Strategic Supplier Engagement: The Chair and Managing Director visited China to engage with global suppliers, ensuring a resilient and cost-competitive supply chain.
Oil and Gas Sector Expansion: Synertec is progressing key opportunities across multiple gas fields, with discussions advancing, including clients nearing Final Investment Decision (FID) for Powerhouse procurement.
Expanded Product Portfolio: Synertec has proposed an advanced Australian-designed battery control system for Distributed Network Service Providers (DNSPs). Unlike foreign-controlled systems, Synertec’s technology eliminates concerns over external access to critical infrastructure, including the national energy grid.
Engineering breakdown
Water Corporation Panel Mobilisation: Synertec has joined Western Australia’s Water Corporation Panel, prequalifying to bid for automation and control projects worth an estimated $100 million annually. Mobilisation efforts include hiring a Program Manager, staff training, relocation to a new Perth office, and commencement of project scoping.
Growth in Water Sector: Synertec’s east coast water sector expansion continues, with 17 new projects across seven clients.
Critical Infrastructure: While investment decisions across the sector have slowed, key project wins in Q2 include contracts with Chevron, GrainCorp, ANSTO, and Defence sector clients.
Cost Reduction Initiatives: In response to industry-wide downturns, Synertec has implemented cost-saving measures, including a 20% workforce reduction, overhead rationalisation, and facility expense cuts. Management has recalibrated staffing levels and skills to align with near-term growth opportunities.
What’s next?
During the remainder of the 2025 financial year (FY25), Synertec will focus on completing key projects and advancing its strategic initiatives. The company plans to safely and efficiently finalise the commissioning of its Powerhouse technology and complete site works at Santos.
In parallel, Synertec will prioritise securing near-term opportunities for Powerhouse while expanding its market presence through strategic partnerships. The company also aims to explore new applications for its Powerhouse intellectual property (IP) across different markets, broadening its commercial potential.
Recurring blue chip customer base for engineering solutions.
To enhance operational efficiency, Synertec will develop supply chain partnerships that provide significant cost advantages and improve supply resilience. Additionally, the company remains committed to its engineering strategy, targeting and securing long-term contracts with government agencies and large infrastructure entities.