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Subsea 7 takes full control at Seaway Heavy Lifting

UK player Subsea 7 has acquired the remaining interest it did not already own in Netherlands-based offshore wind installation group Seaway Heavy Lifting.

Under the deal with K&S Baltic Offshore, Subsea 7 bought 50% of Seaway, turning the contractor into a wholly-owned subsidiary.

Subsea 7 paid cash of $279m for the acquisition and is due to make an additional payment of up to $40m in 2021, on the condition that certain performance targets are met.

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"Our investment to acquire the remaining shares in Seaway is aligned with our strategy to grow and strengthen our business for the long-term,” Subsea 7 chief executive Jean Cahuzac said.

“Consolidating Seaway into the group increases our participation in renewables, heavy lifting and decommissioning services. These are areas where we expect market activity to increase and see potential to grow our market share,” Cahuzac said.

Seaway, which is contracted to work on the $1.1bn, 588MW Beatrice wind farm off Scotland, operates two heavy-lift vessels.

Last year, the company saw its revenues dip to $398m, compared to $491m in 2015, and its profits also dropped to just $49m compared to $121m in the previous year.

Subsea 7 will report revenues and profit from the new acquisition as early as the first quarter of this year, within a new business unit dubbed renewables and heavy lifting.

This article first appeared in Recharge's sister publication Upstream

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