DeepOcean Increases Profit in 2022
Ocean services provider DeepOcean increased its profit in 2022 and high demand saw the company enter 2023 with a significantly improved order backlog.
In 2022, DeepOcean delivered revenue of $566.1 million, up 13.4 percent from $499.4 million in the prior year. The group’s operating profit (EBIT) ended at $65.8 million, a significant improvement from $49.9 million in 2021.
“We delivered a solid 2022 where the important financial KPIs pointed in the right direction. IMR work in the offshore energy industries remains the key revenue driver, but income from removal and recycling of offshore infrastructure is proportionally growing the most,” says Frode Garlid, CFO of DeepOcean Group.
Last year, the company made several strategic measures to enable a cost-effective energy transition at sea, it noted. It established two joint ventures – Remota AS and USV AS – together with Solstad Offshore and Østensjø to accelerate the use of remotely controlled operations offshore.
The company also entered into a strategic partnership agreement with Aker BP, where DeepOcean is the preferred supplier of subsea services for the next few years. DeepOcean also developed an Autonomous Inspection Drone which is currently carrying out its first offshore operations.
Furthermore, DeepOcean reminded it acquired Norwegian engineering and technology company Installit, which specializes in subsea cables to strengthen the group’s offering within offshore renewables.
“We consider remote operations pivotal in driving down emissions and costs for operators of offshore energy assets, thereby enabling more offshore energy developments. Over the years we have proven our willingness to invest in realizing remote operations and 2022 was no different,” adds Øivind Mikaelsen, CEO of DeepOcean.
DeepOcean experienced strong growth in Europe and record high activity in North America in 2022, it said. The company’s Africa business saw a decline in revenue in 2022 but is expected to grow substantially in 2023 as a significant amount of offshore work has been secured for this year, DeepOcean noted.
Within oil and gas, subsea IMR work was the main revenue driver for DeepOcean, which also doubled its operating revenue from the removal and recycling of old subsea infrastructure, the company said. The group also reported an increase in work within renewable energy during 2022, when it supported operators of offshore wind farms in both Europe and the USA.
“The growth in offshore wind developments has progressed slightly slower than expected. This is partially due to replacement effects, where energy security work has taken precedence, but maybe more importantly, we still see a supply chain imbalance within the offshore renewables market. However, the long-term outlook is positive and our message to developers and operators is that we have the competence and assets, including our remote operations offering, to support them,” Mikaelsen stated.
Throughout 2022, DeepOcean said it received new orders worth $705.7 million, up from $556.7 million the year before. At year-end 2022, the group’s order backlog stood at $411.7 million, versus $272 million one year prior. At the end of February 2023, the order backlog had grown to $498 million following several project wins including contracts to support Equinor on both the Irpa and Verdande field developments on the Norwegian continental shelf.
“Our strategy to diversify into more offshore energy segments and other ocean-based industries has proven successful. Today’s DeepOcean is much less vulnerable to sector-specific fluctuations and our order backlog is very high, which together with attractive frame agreements provides excellent visibility for the coming years. We look forward to 2023 and the coming years,” concluded Mikaelsen.
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Published at Wed, 19 Apr 2023 12:00:00 -0700
