The recently fully funded Norwegian shipping company Golden Energy Offshore Services AS predicts brighter times. Now it has secured a contract worth at least 7.9 million dollars just the first year.
Golden Energy Offshore Services (GEOS) on Friday (Aug12) signed a contract with a leading international energy company. The contract applies to a general supply mission based in the Caribbean, starting this autumn.
The contract runs for a minimum of 12 months and has a minimum payment of approximately USD 7.9m. This gives an operating margin of approximately 64 percent. The charterer also has an option to extend the contract for up to one year (two times six months), which will provide an income of an additional approximately USD 8m.
This is an important contract for GEOS after a major turnaround. After several years marked by covid and general downturn for the offshore industry, things are improving for the company, which is based in Ålesund, Norway. The company had a good second quarter, with good utilization and a rising rate climate. So far, it has achieved 100 per cent utilization in the third quarter, at attractive rates.
“We are very optimistic. The offshore market has picked up sharply, and we are in a period of high utilization, which analysis show will continue. With four ships, including two state-of-the-art new builds, in full operation and Oaktree as a new, long-term financial partner, we are well rigged to take part in the growth ahead,” says CEO Per Ivar Fagervoll.
To fulfil the contract, GEOS will use one of its newly built multi-purpose platform service vessels (MPSVs), Energy Empress and Energy Duchess, both of which were delivered in 2019. Thus, GEOS has been secured full utilization of one of the seships until the end of autumn 2023, with the possibility of an extension until autumn 2024.
Recently, GEOS secured a refinancing agreement worth USD 45m with global asset manager Oaktree Capital Management. The company has thus secured full funding for the acquisition of the MPSVs and is fully funded, which gives stability and possibilities for the times ahead.
The company has a further uncommitted accordion facility of USD 35m from Oaktree to finance new ship acquisitions. Fagervoll explains that this accordion facility may be used on both new-builds and second-hand tonnage, or a combination of both, and that the company views both oil and gas and offshore wind as possible growth areas.
“Our ambitionis to grow and expand the fleet in the coming years whilst always continue maintain and develop our great competence and high focus on the important sustainability field, hereunder energy efficiency and management, green operation, green recycling and optimal lifecycle management of vessels and ocean assets,” says Per Ivar Fagervoll.