Magma Global has announced that it has successfully raised $60m (£40m) from Strategic Industrial Capital Partners (SICP) and existing investors to support its growth plans.
Building on its success across a number of product segments with leading operators and service companies, notably the recently announced programme with BP and Subsea 7, the proceeds of the investment round will be used for the expansion of Magma Global’s manufacturing capability and to provide additional working capital to support its rental business.
Commenting on the new investment, Martin Jones, Magma Global’s CEO, said:
“It is a tough market for our customers today and m-pipe® is a key technology in helping reduce capex and opex costs for subsea exploration and production. This investment enables Magma to accelerate the expansion of our manufacturing facility, with a fourfold increase in our capability over the next two years to meet the increasing demand for m-pipe®.
For some time now the market has recognised that, unlike steel and non-bonded flexibles, m-pipe® does not rapidly deteriorate over time through corrosion and chemical effects. Combined with its exceptional fatigue and erosion performance, this gives m-pipe® a service lifetime far beyond other technologies.
This capital raise enables Magma to launch its rental business focused on intervention and downline applications. By renting m-pipe® Magma can deliver our customers a more cost effective and reliable alternative to coiled tubing and downline solutions, whilst maximising value from the long life of m-pipe®.
I would like to thank our shareholders for their continuing support and look forward to building on the solid foundations that have been laid over the past five years since we founded Magma.”
In addition to the management team, Magma’s shareholders are Calgary-based Azimuth Capital Management and Copenhagen-based NES Partners, the UK’s Business Growth Fund and SICP.
Magma’s m-pipe® is the world’s most reliable subsea pipe for use in the offshore oil and gas industry – a high performance carbon fibre / PEEK polymer pipe which is one tenth the weight of equivalent steel pipe and highly resistant to degradation. Click for more
The unique construction of m-pipe® ensures the high strength that reduces both subsea project risk and project costs, making it ideally suited to subsea, deep water and sour service environments around the globe.