Full Year 2026 Synertec Corp Ltd Earnings Call

Speaker #1: Okay.

Michael Carroll: We've got six years of data. We can point to the fact that we've had no unplanned or planned call-outs. That's part of our sales proposition. It's compelling. From our point of view, the economics are really powerful as well. Just wanted to put across that there will be competition coming. They're way behind at the moment, and we're working to keep ahead of them really, really hard. Yash, maybe we'll move on. This is the exciting thing for us. Rather than looking at the underneath this slide here, the Santos benefits, that's for future reference for people new to the story. What's really, really important for us, and I really want to explain why this contract is important to us. It's because we're being dragged, not dragged, we're being taken by the client into their central operations.

Michael Carroll: We've got six years of data. We can point to the fact that we've had no unplanned or planned call-outs. That's part of our sales proposition. It's compelling. From our point of view, the economics are really powerful as well. Just wanted to put across that there will be competition coming. They're way behind at the moment, and we're working to keep ahead of them really, really hard. Yash, maybe we'll move on. This is the exciting thing for us. Rather than looking at the underneath this slide here, the Santos benefits, that's for future reference for people new to the story. What's really, really important for us, and I really want to explain why this contract is important to us. It's because we're being dragged, not dragged, we're being taken by the client into their central operations.

Speaker #2: Was that six years of data? We can point to the fact that we've had no unplanned or planned callouts, and so that's part of our sales proposition.

Speaker #2: It's compelling, but from our point of view, the economics are really powerful as well. So I just wanted to put across that there will be competition coming.

Speaker #2: They're way behind at the moment, and we're working to keep ahead of them—really, really hard.

Speaker #1: So, yes, maybe we'll move on.

Speaker #2: So this is the exciting thing for us, and rather than looking at, you know, underneath this slide here—the Santos benefits—that's sort of for future reference for people new to the story.

Speaker #2: But what's really, really important for us—and I really want to explain why this contract is important to us—is because we're being, not dragged, but taken by the client into their central operations.

Speaker #2: So what we see as a picture here, is a part of Mumba, Santos's Mumba facility in the Cooper Basin. For those who may not know, Santos is Australia's second-largest energy company, so this is a really significant company in the Australian context.

Michael Carroll: What we see is a picture here of part of Moomba, Santos' Moomba facility in the Cooper Basin. For those who may not know, Santos is Australia's second-largest energy company. This is a really significant company in the Australian context. Before the announcement yesterday, we were operating in the Surat Basin in Queensland, providing power, very high availability power to the gathering operations, the wells that gather the gas and take it to the central processing facilities on Curtis Island. It's lots of discrete projects that we have powering four or five wells here, four or five wells there. Santos has, I don't know, 2,500 or 3,000 wells. While the gathering is important, the risk is distributed across the whole field.

Michael Carroll: What we see is a picture here of part of Moomba, Santos' Moomba facility in the Cooper Basin. For those who may not know, Santos is Australia's second-largest energy company. This is a really significant company in the Australian context. Before the announcement yesterday, we were operating in the Surat Basin in Queensland, providing power, very high availability power to the gathering operations, the wells that gather the gas and take it to the central processing facilities on Curtis Island. It's lots of discrete projects that we have powering four or five wells here, four or five wells there. Santos has, I don't know, 2,500 or 3,000 wells. While the gathering is important, the risk is distributed across the whole field.

Speaker #2: So before the announcement yesterday, we were operating in the Surat Basin in Queensland, providing very high-availability power to the gathering operations—the wells that gather the gas and take it to the central processing facilities on Kerth Island.

Speaker #2: So it's a lot of discrete projects that we have, powering, you know, four or five wells here, four or five wells there, four or five wells elsewhere.

Speaker #2: Santos has, I don't know, 2,500 or 3,000 wells, so while the gathering is important, the risk is distributed across the whole field.

Speaker #2: So what's happened now is that through delivery excellence, through a technology platform that's, you know, really leading the pack—and we know that—through our supply chain and through our engineering and integration capability, Santos have trusted us to bring our powerhouse technology platforms into their central operation in Mumbai.

Michael Carroll: What's happened now is that through delivery excellence, through a technology platform that's really leading the pack, and we know that, through our supply chain and through our engineering and integration capability, Santos have trusted us to bring our Powerhouse technology platform into their central operation in Moomba. What this means is that we are sitting beside their gas-fired generators, equal to gas-fired generators in terms of criticality. If the power plant goes down, the whole operation stops. Okay? I think that's the first thing. The second thing is that the projects which we've got the contract under is about AUD 357 million to future-proof the Moomba operations, if you like. It's Santos' vision for how they're going to operate that facility going forward. We're part of that vision now. As power, they're going to electrify a whole lot more of those operations.

Michael Carroll: What's happened now is that through delivery excellence, through a technology platform that's really leading the pack, and we know that, through our supply chain and through our engineering and integration capability, Santos have trusted us to bring our Powerhouse technology platform into their central operation in Moomba. What this means is that we are sitting beside their gas-fired generators, equal to gas-fired generators in terms of criticality. If the power plant goes down, the whole operation stops. Okay? I think that's the first thing. The second thing is that the projects which we've got the contract under is about AUD 357 million to future-proof the Moomba operations, if you like. It's Santos' vision for how they're going to operate that facility going forward. We're part of that vision now. As power, they're going to electrify a whole lot more of those operations.

Speaker #2: So, what this means is that we are sitting beside their gas-fired generators—equal to the gas-fired generators in terms of criticality. So, if this power, if the power plant goes down, the whole operation stops.

Speaker #2: Okay? So, you know, I think that's the first thing. The second thing is that the project, which we've got the contract under, is about $357 million to future-proof the Mumba operations, if you like.

Speaker #2: It's Santos's vision for how they're going to operate that facility going forward. We're part of that vision now. And so, as power, they're going to electrify a whole lot more of those operations. But interestingly—which has really got nothing to do with us—is that as the power demand increases, they can't just go and buy a gas-fired turbine generator.

Michael Carroll: Interestingly, which has really got nothing to do with us, is that as the power demand increases, they can't just go and buy a gas-fired turbine generator. You can't get them for love nor money. What's the alternative? The alternative is Powerhouse right now. We can deliver on that really quickly. Even, I think it was government of South Australia said the other day on 7.30 Report, his government can't get a gas-fired generator for five years. You've got to have a bit of luck in business, and I think, the market's moved in such a way that we'll take that luck and really drive that home. Don't think I want to say anything more about that slide. Again, just quickly on this, there's our four market segments. Santos and Shell are in the remote part of that, the far left one.

Michael Carroll: Interestingly, which has really got nothing to do with us, is that as the power demand increases, they can't just go and buy a gas-fired turbine generator. You can't get them for love nor money. What's the alternative? The alternative is Powerhouse right now. We can deliver on that really quickly. Even, I think it was government of South Australia said the other day on 7.30 Report, his government can't get a gas-fired generator for five years. You've got to have a bit of luck in business, and I think, the market's moved in such a way that we'll take that luck and really drive that home. Don't think I want to say anything more about that slide. Again, just quickly on this, there's our four market segments. Santos and Shell are in the remote part of that, the far left one.

Speaker #2: You can't get them for little money. And so, what's the alternative? The alternative is Powerhouse right now, and so we can deliver on that really quickly.

Speaker #2: Even, I think it was the Governor of South Australia who said the other day, on the 7.30 Report, his government can't get a gas-fired generator for five years.

Speaker #2: So you've got to have a bit of luck in business, and I think, you know, the market's moved in such a way that we'll take that luck and really drive that home.

Speaker #2: I don't think I want to say anything more about that slide.

Speaker #1: Okay.

Speaker #2: And again, just to quickly touch on this, there are our four market segments. You know, Santos and Shell are in the remote part of that, the far left.

Speaker #2: One, but interestingly, now Santos is also in the industry resilience, along with Amplitude Energy, where we are replacing gas-fired generators. That's really exciting for us.

Michael Carroll: But interestingly, Santos is also in the industry resilience, along with Amplitude Energy, where we are replacing gas-fired generators. That is really exciting for us. Each one of these segments is a really large addressable market, and we are really just starting this journey now, but with a really strong technology platform and an engineering team that can understand the client needs and deliver to those client needs. Next slide, I think, Yash. I have just seen the kilowatt, the 30 there with the kW above it. That should be megawatt-hour. So that is my mistake. Apologies for that. Anyway, there is not much more to say about this slide, except it is showing the increase in our megawatt-hour delivered to clients or contracted and delivered to clients. I suppose the question that this may facilitate is, can we sustain the growth? That goes to supply chain.

Michael Carroll: But interestingly, Santos is also in the industry resilience, along with Amplitude Energy, where we are replacing gas-fired generators. That is really exciting for us. Each one of these segments is a really large addressable market, and we are really just starting this journey now, but with a really strong technology platform and an engineering team that can understand the client needs and deliver to those client needs. Next slide, I think, Yash. I have just seen the kilowatt, the 30 there with the kW above it. That should be megawatt-hour. So that is my mistake. Apologies for that. Anyway, there is not much more to say about this slide, except it is showing the increase in our megawatt-hour delivered to clients or contracted and delivered to clients. I suppose the question that this may facilitate is, can we sustain the growth? That goes to supply chain.

Speaker #2: Each one of these segments is a really large addressable market, and we're really just starting this journey now, but with a really strong technology platform and an engineering team that can understand the client needs and deliver to those client needs.

Speaker #2: Next slide, I think. Yes? Oh, I've just seen the kilowatt—the 30 there with the kW above it. That should be megawatt-hour, so that's my mistake.

Speaker #2: Apologies for that. Anyway, there’s not much more to say about this slide, except it is showing the increase in our megawatt-hours delivered to clients, or contracted and delivered to clients.

Speaker #2: I suppose the question that gets at this may facilitate is: Can we sustain the growth? And that goes to supply chain. Our supply chain—I was in China before Christmas in 2024, setting the whole thing in train to look at the global technology partners that we might be able to team up with.

Michael Carroll: And our supply chain, I was in China before Christmas in 2024, setting the whole thing in train to look at the global technology partners that we might be able to team up with. The Powerhouse team has continued that work, and we have really strong partners, best in the world, biggest in the world in their areas. So we are confident that the supply chain can easily deliver at the rate which industry will demand. So there is a lot of work that has gone into the background to making sure Powerhouse can deliver. Again, that goes to keeping our moat really, really deep and really, really wide. Someone says we need 100 units, we are there, we can do it, our supply chain can do that. So I think next slide there, Yash. There is nothing more I want to say on that one.

Michael Carroll: And our supply chain, I was in China before Christmas in 2024, setting the whole thing in train to look at the global technology partners that we might be able to team up with. The Powerhouse team has continued that work, and we have really strong partners, best in the world, biggest in the world in their areas. So we are confident that the supply chain can easily deliver at the rate which industry will demand. So there is a lot of work that has gone into the background to making sure Powerhouse can deliver. Again, that goes to keeping our moat really, really deep and really, really wide. Someone says we need 100 units, we are there, we can do it, our supply chain can do that. So I think next slide there, Yash. There is nothing more I want to say on that one.

Speaker #2: The powerhouse team has continued that work, and we have really strong partners—best in the world, biggest in the world in their areas—and so we're confident that the supply chain can deliver easily, deliver at the rate which industry will demand.

Speaker #2: So there's a lot of work that's gone into the background to making sure Powerhouse can deliver, and again, that goes to keeping our moat really, really deep and really, really wide.

Speaker #2: Someone says, "We need 100 units." We're there, we can do it—our supply chain can do that. So, I think next slide there. Yes, there's nothing more I want to say on that one.

Speaker #2: So I suppose, in conclusion, you know, one of my roles as MD is clarity—clarity for the team—so our team is crystal clear on what they need to do across the three areas there.

Michael Carroll: So I suppose in conclusion, one of my roles as MD is clarity for the team. So our team is crystal clear on what they need to do across the three areas there. So there is Powerhouse, there is engineering, and there is corporate. It could not be clearer, and we are really excited about the future. So I think if we have got questions, I will finish there. We can move to questions.

Michael Carroll: So I suppose in conclusion, one of my roles as MD is clarity for the team. So our team is crystal clear on what they need to do across the three areas there. So there is Powerhouse, there is engineering, and there is corporate. It could not be clearer, and we are really excited about the future. So I think if we have got questions, I will finish there. We can move to questions.

Speaker #2: So there's Powerhouse, there's Engineering, and there's Corporate. It couldn't be clearer, and we're really excited about the future. So I think if we've got questions, I'll finish there.

Speaker #2: We can move to questions.

Speaker #1: We do. We have questions that were submitted earlier and questions that have come through today, so please keep going with your questions. The first one, I think, is top of mind for everyone: your very exciting news about Santos.

[Company Representative] (Synertec): We do. We have questions that were submitted earlier and questions that have come through today. So please keep going with your questions. The first one I think is everyone's top of mind is your very exciting news about Santos. So Michael, can you talk a little bit about when you expect? We have only had a day to digest that information, and already the question has come through, when is the next Powerhouse sale coming?

[Company Representative] (Synertec): We do. We have questions that were submitted earlier and questions that have come through today. So please keep going with your questions. The first one I think is everyone's top of mind is your very exciting news about Santos. So Michael, can you talk a little bit about when you expect? We have only had a day to digest that information, and already the question has come through, when is the next Powerhouse sale coming?

Speaker #1: So Michael, can you talk a little bit about when you expect—and we've only had a day to digest that information, and already the questions come through—when's the next powerhouse sale coming?

Speaker #2: Yep. We have very active work. I can't answer that, obviously. I can't answer that because we don't know. Some things come from way back and jump to the front, like what happened yesterday.

Michael Carroll: Yep. I cannot answer that, obviously, I cannot answer that because we do not know. Some things come from way back and jump to the front, like what happened yesterday. All I will say is that the pipeline is very active. There are a lot of opportunities which are right at the front of the queue. Which one is to fall next, I could not tell you. I have got to say, that goes for both engineering, there are some really significant opportunities right there for us, and it goes for Powerhouse. Those two, engineering and Powerhouse, are hand in glove. For us right now, that is a really powerful combination that we look forward to updating the market on in the near future on both of those segments.

Michael Carroll: Yep. I cannot answer that, obviously, I cannot answer that because we do not know. Some things come from way back and jump to the front, like what happened yesterday. All I will say is that the pipeline is very active. There are a lot of opportunities which are right at the front of the queue. Which one is to fall next, I could not tell you. I have got to say, that goes for both engineering, there are some really significant opportunities right there for us, and it goes for Powerhouse. Those two, engineering and Powerhouse, are hand in glove. For us right now, that is a really powerful combination that we look forward to updating the market on in the near future on both of those segments.

Speaker #2: All I'll say is that the pipeline is very active. There are a lot of opportunities which are right at the front of the queue. Which one is to fall next?

Speaker #2: I couldn't tell you. And that goes for both—I've got to say—that goes for both engineering; there are some really significant opportunities right there for us, and it goes for powerhouse.

Speaker #2: And those two—engineering and powerhouse—are hand in glove. So for us right now, that's a really powerful combination that we look forward to updating the market on in the near future, on both of those segments.

Speaker #2: So I can't say when's next—what's next—but there will be some significant announcements, with a bit of luck, coming our way in the near future.

Michael Carroll: I cannot say when is next, what is next, but there will be some significant announcements, with a bit of luck, coming our way in the near future.

Michael Carroll: I cannot say when is next, what is next, but there will be some significant announcements, with a bit of luck, coming our way in the near future.

Speaker #1: Okay, the second question that's come up by a number of different people is: Why Caprice? I'll hand that one to you, Michael.

[Company Representative] (Synertec): Okay. The second question that has come up by a number of different people is, why cap raise? I hand that one to you, Michael.

[Company Representative] (Synertec): Okay. The second question that has come up by a number of different people is, why cap raise? I hand that one to you, Michael.

Speaker #2: Yes, it's a judgment. It's a management judgment, it's a board judgment, it's taking a view on what's going on in the world, what's directly in front of us. Some of the things which informed why we did the Caprice and why we moved so quickly were that we've got some really significant opportunities ahead of us. Major companies are running their nose over Synertec—not just the technology platform, but also the strength of the balance sheet.

Michael Carroll: Yes. It is a management judgment, it is a board judgment. It is taking a view on what is going on in the world, what is directly in front of us. Some of the things which informed why we did the cap raise and why we moved so quickly was that we have got some really significant opportunities ahead of us. Major companies are running their nose over Synertec, not just the technology platform, but the strength of the balance sheet. We took the view with what we anticipate is coming our way, that we needed to strengthen our balance sheet, and we need to do it really quickly. We knew that Santos was a potential. We did not think it would be happening so quickly.

Michael Carroll: Yes. It is a management judgment, it is a board judgment. It is taking a view on what is going on in the world, what is directly in front of us. Some of the things which informed why we did the cap raise and why we moved so quickly was that we have got some really significant opportunities ahead of us. Major companies are running their nose over Synertec, not just the technology platform, but the strength of the balance sheet. We took the view with what we anticipate is coming our way, that we needed to strengthen our balance sheet, and we need to do it really quickly. We knew that Santos was a potential. We did not think it would be happening so quickly.

Speaker #2: So, we took the view—with what we anticipate is coming our way—that we need to strengthen our balance sheet, and we need to do it really quickly.

Speaker #2: And so we knew that Santos was a potential. We didn't think it would be happening so quickly, so it's sort of like, you know, some people might say, well, why didn't you do the raise into some good news?

Michael Carroll: Well, it's sort of like some people might say, "Well, why didn't you do the raise into some good news?" Well, I was of the view that maybe we wouldn't have got the good news if we didn't do the raise, because we were able to prove that we could raise money if needed. I think everybody who's had a good look at us saw that there's a lot of debt in the business. And so that rightly raises questions. We needed to address that, and we needed to address it quickly. And that's what we decided to do. That's why we did the raise. And there was also the geopolitical environment. If you're thinking about doing a raise and you've got bombs raining down in other critical parts of the world, that raise goes off the table.

Michael Carroll: Well, it's sort of like some people might say, "Well, why didn't you do the raise into some good news?" Well, I was of the view that maybe we wouldn't have got the good news if we didn't do the raise, because we were able to prove that we could raise money if needed. I think everybody who's had a good look at us saw that there's a lot of debt in the business. And so that rightly raises questions. We needed to address that, and we needed to address it quickly. And that's what we decided to do. That's why we did the raise. And there was also the geopolitical environment. If you're thinking about doing a raise and you've got bombs raining down in other critical parts of the world, that raise goes off the table.

Speaker #2: Well, I was of the view that maybe we wouldn't have got the good news if we didn't do the raise, because we're able to prove that we could raise money if needed. I think everybody who's had a good look at us saw that there's a debt, there's a lot of debt in the business, and so that, you know, that rightly raises questions.

Speaker #2: We needed to address that, and we needed to address it quickly. And that's what we decided to do. So that's why we wrote, we did the raise, and also, you know, there was also the geopolitical environment.

Speaker #2: If you're thinking about doing a raise and you've got bombs raining down in other critical parts of the world, that raise goes off the table.

Speaker #2: Therefore, if there is an issue, or you need the money, you won't get it. And that's just the life of a micro-cap AP business.

Michael Carroll: Therefore, if there is an issue about you needing the money, you won't get it. And that's just the life of a micro-cap business. You've got to be super careful around those areas. So that's why we did the raise when we did it.

Michael Carroll: Therefore, if there is an issue about you needing the money, you won't get it. And that's just the life of a micro-cap business. You've got to be super careful around those areas. So that's why we did the raise when we did it.

Speaker #2: You really need to be super careful around those areas, so that's why we did the raise when we did it.

Speaker #1: And there's a follow-on question here that I'm going to pass to Yash. The question is: Following the capital raise, is there potential for your current debt facility to be refinanced to a cheaper level?

[Company Representative] (Synertec): Now, there's a follow-on question here that I'm going to pass to Yash. The question is, following the capital raise, is there a potential for your current debt facility to be refinanced to a cheaper level?

[Company Representative] (Synertec): Now, there's a follow-on question here that I'm going to pass to Yash. The question is, following the capital raise, is there a potential for your current debt facility to be refinanced to a cheaper level?

Speaker #2: Yes. I mean, part of that we've already accomplished. I mean, as part of subsequent events from, you know, in the last couple of months post-raise, we have dissolved tranche 3, which was our expensive tranche, and merged it with tranche 1.

Yash Gala: Yes. Part of that we've already accomplished. As part of subsequent events in the last couple of months, post-raise, we have dissolved Tranche Three, which was our expensive tranche, and merged it with Tranche One, which is at a lower interest rate. So we have been able to get and refinance that to a cheaper level already. And that was always the plan, with regards to what we were planning to do post-12 months of the performance and the kind of performance that we've had. So that is a tick in terms of we have accomplished that and been able to refinance to better rates, reducing our cost of borrowings.

Yash Gala: Yes. Part of that we've already accomplished. As part of subsequent events in the last couple of months, post-raise, we have dissolved Tranche Three, which was our expensive tranche, and merged it with Tranche One, which is at a lower interest rate. So we have been able to get and refinance that to a cheaper level already. And that was always the plan, with regards to what we were planning to do post-12 months of the performance and the kind of performance that we've had. So that is a tick in terms of we have accomplished that and been able to refinance to better rates, reducing our cost of borrowings.

Speaker #2: Which is at a lower interest rate. So we have been able to get and refinance that to a cheaper level already. And that was always the plan with regards to what we were planning to do, you know, post 12 months of the performance and the kind of performance that we've had.

Speaker #2: So that is a takeaway in terms of we have accomplished that and been able to refinance to better rates, reducing our cost of borrowings.

Speaker #1: And a quick question, is there anything else? Did you think the Caprice was successful? Anything else you want to add about the Caprice?

[Company Representative] (Synertec): A quick question, did you think the cap raise was successful? Anything else you want to add about the cap raise?

[Company Representative] (Synertec): A quick question, did you think the cap raise was successful? Anything else you want to add about the cap raise?

Speaker #2: Yeah, I mean, the Caprice was significantly oversubscribed, you know. And we've brought on institutionals on, do I register? So, that was always the plan, and we were focused on making sure that we've got the right supporters for us.

Yash Gala: Yeah, the cap raise was significantly oversubscribed, and we have brought on institutionals onto our register. That was always the plan, and we were focused on making sure that we have got the right supporters for us.

Yash Gala: Yeah, the cap raise was significantly oversubscribed, and we have brought on institutionals onto our register. That was always the plan, and we were focused on making sure that we have got the right supporters for us.

Speaker #1: And we have new investors, which is always great to see as well. Yep. Okay, now, the other question that's popping up from a number of different people is the word: data centers.

[Company Representative] (Synertec): We have new investors, which is always great to see as well. Okay, now the other question that is popping up by a number of different people is the word data centers. We heard it in the presentation today. It is a worldwide phenomena about how the growth of the data centers is raining down on us. Can you talk about that, Michael? About where Synertec fits in, if anywhere, and what you see for the future.

[Company Representative] (Synertec): We have new investors, which is always great to see as well. Okay, now the other question that is popping up by a number of different people is the word data centers. We heard it in the presentation today. It is a worldwide phenomena about how the growth of the data centers is raining down on us. Can you talk about that, Michael? About where Synertec fits in, if anywhere, and what you see for the future.

Speaker #1: We heard it in the presentation today. It is a worldwide phenomenon, how the growth of data centers is bearing down on us.

Speaker #1: Can you talk about that, Michael—about where Synertec fits in, if anywhere, and what you see for the future?

Speaker #2: Yeah, we have a strategy around data centers, but, you know, I think one of the things we've learned about the people who run data centers is that they are very conservative, very risk-averse.

Michael Carroll: Yeah. We have a strategy around data centers, but I think one of the things we have learned about the people who run data centers is that they are very conservative, very risk-averse. So we had engaged lightly with data centers around Powerhouse, but it came back to us clearly that we had to be able to point to some significant progress in delivering on the Santos type of recent announcement type of project. So we think that we can now engage more meaningfully with data centers because we have Amplitude Energy, and we have Santos now subscribing to our view around how we can support, eliminate, reduce fossil fuel generation.

Michael Carroll: Yeah. We have a strategy around data centers, but I think one of the things we have learned about the people who run data centers is that they are very conservative, very risk-averse. So we had engaged lightly with data centers around Powerhouse, but it came back to us clearly that we had to be able to point to some significant progress in delivering on the Santos type of recent announcement type of project. So we think that we can now engage more meaningfully with data centers because we have Amplitude Energy, and we have Santos now subscribing to our view around how we can support, eliminate, reduce fossil fuel generation.

Speaker #2: So we had engaged lightly with data centers around Powerhouse, but it came back to us clearly that we had to be able to point to some significant progress in delivering on our, you know, the Santos-type or recent announcement-type of project.

Speaker #2: So we think that we can now engage more meaningfully with data centers because we have Amplitude Energy, and we have Santos now subscribing to our view around how we can support, eliminate, and reduce fossil fuel generation.

Speaker #2: And where that sort of leads into—let me talk about data centers a bit further—is that, you know, with the Powerhouse unit, potentially you can accelerate your connection to the grid because you won't be drawing so much from the grid.

Michael Carroll: Where that sort of leads into, let me talk about data centers a bit further, is that, with a Powerhouse unit, potentially you can accelerate your connection to the grid because you will not be drawing so much from the grid. I am yet to sort of understand how the new legislation or the proposed legislation around data centers having to provide their own power, it is moving in the right direction from a legislation point of view for us. I think we are just a bit careful of promising too much around data centers. We are a conservative company, even though we are microcap. We are a conservative company, and we do not try and pump anything at any time. I think we are slowly gaining credibility by saying, "This is what we are going to do," and then doing it.

Michael Carroll: Where that sort of leads into, let me talk about data centers a bit further, is that, with a Powerhouse unit, potentially you can accelerate your connection to the grid because you will not be drawing so much from the grid. I am yet to sort of understand how the new legislation or the proposed legislation around data centers having to provide their own power, it is moving in the right direction from a legislation point of view for us. I think we are just a bit careful of promising too much around data centers. We are a conservative company, even though we are microcap. We are a conservative company, and we do not try and pump anything at any time. I think we are slowly gaining credibility by saying, "This is what we are going to do," and then doing it.

Speaker #2: I'm yet to sort of understand how the new legislation, or the proposed legislation, around data centers having to provide their own power. It's moving in the right direction from a legislation point of view for us.

Speaker #2: But I think we're just a bit careful about promising too much around data centers. We're a company, and we're a conservative company, even though we're a micro-cap.

Speaker #2: We're a conservative company, and we don't try to pump anything at any time. I think we're slowly, slowly gaining credibility by saying, "This is what we're going to do," and then doing it.

Speaker #2: So, in regards to data centers, our way forward is we will prove the technology in other industries, and then they're always looking at us.

Michael Carroll: In regards to data centers, our way forward is we will prove the technology in other industries, and then they are always looking at us. They will look over the fence and say, "It has got to a point where, yeah, we want to have a look at this." We are driven to the Powerhouse technology from a legislation point of view. We are also driven to Powerhouse from a potential speed to market point of view of getting up to speed. I think there is another really compelling element, and that is with the Powerhouse unit, you need to store less diesel on-site, and that goes to social license. There is sort of the way we are thinking around data centers, but we are being a bit careful with how we approach to remain credible to our investors, but also to our clients.

Michael Carroll: In regards to data centers, our way forward is we will prove the technology in other industries, and then they are always looking at us. They will look over the fence and say, "It has got to a point where, yeah, we want to have a look at this." We are driven to the Powerhouse technology from a legislation point of view. We are also driven to Powerhouse from a potential speed to market point of view of getting up to speed. I think there is another really compelling element, and that is with the Powerhouse unit, you need to store less diesel on-site, and that goes to social license. There is sort of the way we are thinking around data centers, but we are being a bit careful with how we approach to remain credible to our investors, but also to our clients.

Speaker #2: They'll look over the fence and say, it's got to a point where, yeah, we want to have a look at this. We're driven to the powerhouse.

Speaker #2: From a legislative point of view, we're also driven to powerhouse from a potential speed-to-market point of view of getting up to speed.

Speaker #2: But I think there's another really compelling element, and that is with the powerhouse unit, you need to store less diesel on site, and that goes to social license.

Speaker #2: So there's the way we're thinking about data centers, but, you know, we're just being a bit careful with how we approach this to remain credible with our investors.

Speaker #2: But also to our clients.

Speaker #1: Okay, I've got quick questions coming in, so I'm going to go quickly because we've got a limited time. Michael, you mentioned before about the moat of competitors for Powerhouse.

[Company Representative] (Synertec): Okay. I have got quick questions coming in, so we are going to have to go quickly because we have got limited time. Michael, you mentioned before about the moat of competitors for Powerhouse and that you are constantly looking to build a deeper, wider moat. How are you doing this?

[Company Representative] (Synertec): Okay. I have got quick questions coming in, so we are going to have to go quickly because we have got limited time. Michael, you mentioned before about the moat of competitors for Powerhouse and that you are constantly looking to build a deeper, wider moat. How are you doing this?

Speaker #1: And that you are constantly looking to build a deeper, wider moat. How are you doing that?

Speaker #2: Well, the moat has many elements, and probably the most powerful is track record. And our track record, every minute, is expanding. So with these conservative industries—and, you know, the oil and gas industry is very conservative.

Michael Carroll: Well, the moat has many elements, and probably the most powerful is track record. Our track record every minute is expanding. With these conservative industries, and the oil and gas industry is very conservative. The greater the track record, the greater the validation is. I do not think you ever get to a point where it is sort of done. Well, tick. It is always they want more. They want to see more. If you look at then at, say, the data centers, they want to see more. I think time is probably one of the big things about our moat. Our technology, our in-house technology, the control code that we have is our IP. There is tens of thousands of man-hours gone into that development of that code. The third probably, yeah, is still very powerful, is our supply chain.

Michael Carroll: Well, the moat has many elements, and probably the most powerful is track record. Our track record every minute is expanding. With these conservative industries, and the oil and gas industry is very conservative. The greater the track record, the greater the validation is. I do not think you ever get to a point where it is sort of done. Well, tick. It is always they want more. They want to see more. If you look at then at, say, the data centers, they want to see more. I think time is probably one of the big things about our moat. Our technology, our in-house technology, the control code that we have is our IP. There is tens of thousands of man-hours gone into that development of that code. The third probably, yeah, is still very powerful, is our supply chain.

Speaker #2: You know, the greater the track record, the greater the validation is. And I don't think you ever get to a point where it's sort of done.

Speaker #2: You know, oh, tick. It's always that they want more. They want to see more. And so then, if you look at, say, the data centers, they want to see more.

Speaker #2: They want to see more, so I think time is probably one of the big things about our moat. Our technology, our in-house technology—the control code that we have—is our IP.

Speaker #2: That's tens of thousands of man-hours gone into the development of that code. And then third, probably yeah, and still very powerful, is our supply chain.

Speaker #2: We have MOUs with global technology providers. We're working under NDA with some of them, developing specific applications using their technology and our technology, so there is a technology moat around that.

Michael Carroll: We have MOUs with global technology providers. We are working under NDA with some of them in developing specific applications using their technology and our technology. So there is a technology moat around that. I think that is really powerful. We will never tell anybody that there will not be or is not competition. There is competition. We are staying ahead of that competition. It is one of our major focuses. We will always be running hard on that front.

Michael Carroll: We have MOUs with global technology providers. We are working under NDA with some of them in developing specific applications using their technology and our technology. So there is a technology moat around that. I think that is really powerful. We will never tell anybody that there will not be or is not competition. There is competition. We are staying ahead of that competition. It is one of our major focuses. We will always be running hard on that front.

Speaker #2: Now, you know, I think that's really powerful. But I will never tell anybody that there isn't, or won't be, competition. There is competition, and, you know, we're staying ahead of that competition.

Speaker #2: It's one of our major focuses, so we'll always be running hard on that front.

Speaker #1: Okay, back to the Santos deal. There's a question here around: can you confirm it is not a BOOM contract? And is there a build fee?

[Company Representative] (Synertec): Okay, back to the Santos deal. There is a question here around, can you confirm it is not a burn contract? Is there a build fee? When is revenue going to flow from this contract, Michael?

[Company Representative] (Synertec): Okay, back to the Santos deal. There is a question here around, can you confirm it is not a burn contract? Is there a build fee? When is revenue going to flow from this contract, Michael?

Speaker #1: So, when is revenue going to flow from this contract, Michael?

Speaker #2: Yeah, it's a sale. It's definitely a sale. We'll have this finished by the first half of FY27, and I think we have milestones that will be paid.

Michael Carroll: Yeah, it is a sale. It is definitely a sale. We will have this finished by H1 FY27. I think we have milestones that will be paid. So in terms of when revenue is flowing, it will be flowing over the period. Probably the middle of that period is when it will be maximum cash flow. As we have time to be installed. We will not be doing the install, others will. We have done the commission and the site support. Cash flow will drop off towards the end of the project. So it is a milestone-based contract. Yeah, so revenue will start flowing pretty quickly, just in increasing amounts and then dropping off towards the end.

Michael Carroll: Yeah, it is a sale. It is definitely a sale. We will have this finished by H1 FY27. I think we have milestones that will be paid. So in terms of when revenue is flowing, it will be flowing over the period. Probably the middle of that period is when it will be maximum cash flow. As we have time to be installed. We will not be doing the install, others will. We have done the commission and the site support. Cash flow will drop off towards the end of the project. So it is a milestone-based contract. Yeah, so revenue will start flowing pretty quickly, just in increasing amounts and then dropping off towards the end.

Speaker #2: So in terms of when revenue is flowing, it will be flowing over the period and, you know, probably the middle of that period is when it'll be maximum.

Speaker #2: Cash flow. And then, as we have time to put it in to be installed, we won't be doing the install—others will be doing the commissioning of the site support.

Speaker #2: Cash flow will drop off towards the end of the project. So, it's a milestone-based contract. Yeah, so revenue will start flowing pretty quickly, just in increasing amounts and then dropping off towards the end.

Speaker #3: And in terms of maintenance, there’s—sorry.

Yash Gala: In terms of maintenance, there is probably Sorry.

Yash Gala: In terms of maintenance, there is probably Sorry.

Speaker #1: That's a follow-up question. Is there any revenue beyond delivery built in?

[Company Representative] (Synertec): That is the follow-up question, is there any revenue beyond delivery, Joseph?

[Company Representative] (Synertec): That is the follow-up question, is there any revenue beyond delivery, Joseph?

Speaker #3: In terms of maintenance, there could be—there would be a potential for us managing and maintaining the site, but that would sort of be confirmed when we get closer to the delivery dates.

Yash Gala: In terms of maintenance, there would be potential for us managing and maintaining the site.

Yash Gala: In terms of maintenance, there would be potential for us managing and maintaining the site.

Michael Carroll: Yeah.

Michael Carroll: Yeah.

Yash Gala: That will be confirmed when we get closer to the delivery date.

Yash Gala: That will be confirmed when we get closer to the delivery date.

Speaker #2: Yeah.

Speaker #1: Now, that does actually bring us to time. There are a couple more questions, but I think we have generally addressed these. We really appreciate this opportunity to engage with investors.

Michael Carroll: Yep.

Michael Carroll: Yep.

[Company Representative] (Synertec): Now, that does actually bring us to time. There are a couple more questions, but I think we have generally addressed these questions. We do really appreciate this opportunity to engage with investors, and we do look forward to bringing you more news from Synertec over the next couple of weeks and months ahead, before we get together again in February. Thank you, everyone. Any final comments, Michael?

[Company Representative] (Synertec): Now, that does actually bring us to time. There are a couple more questions, but I think we have generally addressed these questions. We do really appreciate this opportunity to engage with investors, and we do look forward to bringing you more news from Synertec over the next couple of weeks and months ahead, before we get together again in February. Thank you, everyone. Any final comments, Michael?

Speaker #1: And we do look forward to bringing you more news from Synertec over the next couple of weeks and months ahead before we get together again.

Speaker #1: In February. So, thank you, everyone. Any final comments, Michael?

Speaker #2: No, I don't think so. I think we're really excited about the future, and all our stakeholders should be excited too.

Michael Carroll: No, I don't think so. I think we're really excited about the future, and all our stakeholders should be excited, too.

Michael Carroll: No, I don't think so. I think we're really excited about the future, and all our stakeholders should be excited, too.

[Company Representative] (Synertec): Fantastic.

[Company Representative] (Synertec): Fantastic.

Yash Gala: Thanks, everyone.

Yash Gala: Thanks, everyone.

Michael Carroll: Thank you.

Michael Carroll: Thank you.

[Company Representative] (Synertec): Thank you.

[Company Representative] (Synertec): Thank you.

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Full Year 2026 Synertec Corp Ltd Earnings Call

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Synertec

Earnings

Full Year 2026 Synertec Corp Ltd Earnings Call

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Wednesday, September 2nd, 2026 at 1:00 AM

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