Ocean services provider DeepOcean increased its profits in 2022 and strong demand saw the company enter 2023 with a significantly improved order book.
In 2022, DeepOcean had revenue of $566.1 million, up 13.4% from $499.4 million the previous year. Group operating profit (EBIT) ended at $65.8 million, a significant improvement on 2021’s $49.9 million.
“We delivered a strong 2022 where the important financial KPIs were pointing in the right direction. IMR’s work in the offshore energy industries remains the main revenue generator, but revenue from the removal and recycling of offshore infrastructure they grow proportionally more,” says Frode Garlid, CFO of DeepOcean Group.
Last year, the company took several strategic steps to enable a cost-effective offshore energy transition, he noted. It established two joint ventures, Remota AS and USV AS, together with Solstad Offshore and Østensjø to accelerate the use of remotely controlled offshore operations.
The company also signed a strategic partnership agreement with Aker BP, where DeepOcean is the preferred provider of subsea services for years to come. DeepOcean also developed an autonomous inspection drone that is currently conducting its first offshore operations.
In addition, DeepOcean recalled that it acquired the Norwegian engineering and technology company Installit, specialized in submarine cables to strengthen the group’s offer within offshore renewables.
“We believe that remote operations are critical to reducing emissions and costs for operators of offshore energy assets, thereby enabling more offshore energy developments. Over the years we have demonstrated our willingness to invest in conducting remote operations and 2022 was no different,” adds Øivind Mikaelsen, CEO of DeepOcean.
DeepOcean saw strong growth in Europe and record activity in North America in 2022, he said. The company’s Africa business saw revenue decline in 2022 but is expected to grow substantially in 2023 as a significant amount of offshore work has been secured for that year, DeepOcean noted.
Within oil and gas, subsea IMR work was the main revenue driver for DeepOcean, which also doubled its operating income from the removal and recycling of old subsea infrastructure, the company said. The group also reported increased work within renewable energy during 2022, when it supported offshore wind farm operators in both Europe and the US.
“Growth in offshore wind developments has progressed somewhat more slowly than expected. This is partly due to substitution effects, where energy security work has prevailed, but perhaps more importantly, we still see an imbalance in the supply chain in 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 deliver I support them,” Mikaelsen said.
Through 2022, DeepOcean said it received new orders worth $705.7 million, up from $556.7 million a year earlier. At year-end 2022, the group’s order book was $411.7 million, up from $272 million a year earlier. By the end of February 2023, the order book 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 segments of offshore energy and other ocean industries has proven successful. Today’s DeepOcean is much less vulnerable to industry-specific fluctuations and our order book is very high, which together with attractive framework agreements provides excellent visibility for the coming years. We look forward to 2023 and beyond,” concluded Mikaelsen.
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