Technology

AML3D snares ExxonMobil 3D printing contract

Wed 29 Jun 22, 11:18am (AEST)
Pictured: an offshore oil and gas platform
Source: Pictured: an offshore oil and gas platform

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Key Points

  • AML3D to manufacture the world’s largest 3D printed pressure vessel
  • ExxonMobil will use the eight ton asset in refinery operations
  • AML3D previously printed a 900kg offshore energy asset which was certified by marine standards bodies, API

3D printing tech player AML3D (ASX:AL3) is up 15% in the first hour of trade as it wins $190k from energy supermajor ExxonMobil to manufacture the world’s largest 3D-printed pressure vessel. 

The 8 ton asset will be made using the company’ patented metals-based additive technology and will be used by Exxon in a refinery. 

Recently, the company manufactured a 940kg piping spool for use in offshore energy operations deemed fit for use by marine standards body Loyd’s Register.

Efficiency key to contract win 

The company’s so called ‘WAM’ 3D printing process allows for faster lead times, crucial to Exxon’s choice of vendor. 

AML3D states it can provide manufacturing windows close to 12 weeks for assets which would otherwise take 12 months to make. 

The company will use a “high strength wire feed stock” to make the refinery vessel which will be inspected by third party assessors. 

Job to flex AML3D’s capability 

Manufacturing facility capacity will be used up to 75% during the length of the job, the company notes, as it sets to break a world record in 3D printing tech. 

The company will also demonstrate its compliance credentials, with the vessel to be designed in line with American Petroleum Institute (API) standards. 

Will the Exxon job boost share performance?

AML3D listed on the ASX in April of 2020. Through 2021, its share price hit an all time high at 57c and has since declined steadily into mid 2022. 

Year to date (YTD) performance is down -52.8%. 

It’s conceivable AML3D may need to raise capital in the near future. 

AML3D's most recent quarterly report shows cash in hand of $3.1m with an opex spend of $1.1m. 

Investors in the company are likely to be keeping a close eye out for the full year report. 

AML3D's three month charts with underlying volume information and the industrials index for comparison
AML3D's three month charts with underlying volume information and the industrials index for comparison

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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