Victrex's Magma programme progresses with Petrobras contract

(Sharecast News) - Victrex said on Wednesday that its 'Magma' mega-programme had taken a significant step forward following the award of a technological contract to TechnipFMC by Petrobras in Brazil. The FTSE 250 high-performance polymer specialist said the order was expected to support the path towards a multi-year commercial opportunity for its technologies in offshore energy applications.

It said the contract would accelerate the development of TechnipFMC's hybrid flexible pipe (HFP), which integrates Victrex PEEK polymer, composite tape, and pipe extrusion technology.

The HFP aimed to provide a lighter, corrosion-resistant alternative to traditional flexible pipe systems, and was designed to address stress corrosion cracking caused by carbon dioxide exposure in subsea environments.

TechnipFMC's work with Petrobras was seeking to standardise HFP as a definitive solution for these challenges.

Victrex said it had a long-standing exclusive supply relationship with TechnipFMC, having collaborated closely during HFP's qualification phase.

The company was also previously a minority shareholder in Magma Global, which was acquired by TechnipFMC in 2021, to help drive the adoption of PEEK-based composite pipes in the energy sector.

"This is a major commercial milestone. It builds on the progress achieved during the qualification phase and is good news for Victrex and our 'Magma' mega-programme," said chief executive officer Jakob Sigurdsson.

"This will help to enable and accelerate a high performance, sustainable, durable and Victrex PEEK-based alternative for the industry, as well as the opportunity to bring a new solution for other oil & gas fields."

"Hybrid Flexible Pipe demonstrates the wide-ranging benefits of Victrex PEEK materials, with significant know-how involved."

At 1120 BST, shares in Victrex were up 5.79% at 896p.

Reporting by Josh White for Sharecast.com.