4C Offshore Empowering Intelligence

Oceanteam secure as Offshore Wind shows continuous growth

4C Offshore | Chris Anderson
By: Chris Anderson 27/08/2015 Edited 4C
The prolonged downturn and the volatility in the oil and gas market has put pressure on the oil and gas sector and as a result Oceanteam, with bases in Norway, Netherlands and Mexico has broadened their focus to different key areas. Recent announcements from major players and clients regarding restructurings, lay-ups and lay-offs have changed the market sentiment significantly and affected asset values.

'Other sectors, like Offshore Wind, show a continuous growth'


Even though the oil and gas market is challenging, other sectors, like Offshore Wind, show a continuous growth. Oceanteam's competitors' focus has shifted towards the latter according to them, increasing the general competition in the Offshore Wind market. The players in Oceanteam's operating markets have an increased focus on reducing costs and increasing their efficiency. This according to them opens up several possibilities for Oceanteam to provide innovative solutions for both new and existing clients.

With a long term contract coverage on all assets, supported by the performance of the engineering and equipment service segment, Oceanteam has according to their report delivered solid results in its targeted geographical offshore and onshore markets.

'The Company demonstrates that it has a scalable and flexible business model, yet remaining conservative. Oceanteam will have a steady capital discipline in order to deleverage and create financial flexibility, allowing the Company to seize new project opportunities.'

The Company's has expanded its services in challenging market conditions while maintaining a solid performance.

In April a USD 35 million installment was amortized to the Company's bondholders. The transaction should  strengthen its balance sheet, improve financial ratios and credit ratings.

Oceanteam acquired OCEANWIND BV now renamed to Oceanteam Cable Solutions


Oceanteam recently acquired the remaining 48% stake in OCEANWIND BV. The company is renamed to Oceanteam Cable Solutions and will transport, handle and store power and fibre optic cables and umbilicals globally.

Other achievements recently include Oceanteam / RentOcean was awarded a contract with Bohlen & Doyen GmbH for supplying a lay spread for a cable laying project in Germany. The lay spread includes a 4000T demountable turntable (click this link for details) and loading tower with built-in tensioner. The contract has a duration of 1 year plus options.  In addition to the lay spread contract the company has also entered into a framework agreement with Bohlen & Doyen GmbH for future equipment, transport and storage deliveries, making RentOcean their main partner and supplier of offshore cable laying and onshore storage solutions.  

Bohlen & Doyen GmbH is part of the SAG Group, service and system suppliers for electrical power, gas, water, and communication networks.

At the time Lex van Doorn, Managing Director of RentOcean stated "RentOcean has a long standing relationship and has collaborated successfully with B&D several times in the past and we are very pleased to be chosen as their main partner on cable laying equipment including related engineering and onshore storage",

Approximately 50% of Oceanteam’s earnings from solution driven services (non-shipping related). Its current strategy is to maintain this earnings split with average of 50% of income growth to come from solution driven services alone.

Its Engineering company KCI Engineers is working on a number of renewable projects including Floating solar panels project and Tender assistance and feed studies stations for several offshore wind projects.  It is also working on and expanded engineering scope for a large observation wheel in the Middle East.
 
Oceanteam plans to pay out dividends by 2018.

HIGHLIGHTS FOR THE QUARTER
  • Revenue from operations USD 19 million
  • EBITDA from operations USD 9 million
  • Operating profit of USD 6.1 million
  • Net finance negative USD 2.9 million
  • Net result for the quarter before revaluation changes is positive USD 3.1 million
  • To complete its value chain,
  • To support this growth Oceanteam / RentOcean secured a EUR 15 million revolving term loan facility.
  • The construction of a large offshore construction support vessel for DOT Shipping is progressing as planned and the two newly delivered FSV's are in operation in Mexico. All vessels are fully financed and have secured long term time charters upon delivery.
  • KCI design engineering has been awarded various contracts and maintains a healthy back log of projects in oil and gas, Offshore Renewables and Innovative Equipment & Structure both offshore and onshore.
  • Oceanteam Shipping's CSV and FSV fleet is fully operational and all vessels have contract coverage until early 2017 or longer.

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