Offshore support group targets $1 billion turnover after major boost for renewables ambition

A major offshore support and wind farm development group has been given the “firepower” to further expand its renewables business after raising $140 million (£114m).

OEG Energy Group said the new committed financing would allow it to pursue opportunities within its active acquisition pipeline, which has an emphasis on offshore renewables

OEG Energy Group, which has Aberdeenshire roots stretching back five decades, said the new committed financing would allow it to pursue “complementary opportunities” within its active acquisition pipeline, which has an emphasis on offshore renewables. The fresh funding is being backed by NatWest, Citi, Santander and Goldman Sachs.

The group has a turnover in the region of $400m, of which 40 per cent is from the renewables market. It is targeting overall group turnover of $1 billion in the next five years.

John Heiton, OEG’s chief executive, said: “This financing provides OEG with further firepower, optionality and flexibility to better pursue its growth objectives. The quality of the banks that have participated in the syndicate reflects OEG’s leading position in the market and the trust that stakeholders have in our business model, growth prospects and ability to play a meaningful role within the global energy transition. The global energy industry is changing and OEG has adapted its business accordingly.

“We have already established ourselves as a key player in the development, construction and maintenance of offshore wind farms in core European markets through a number of strategic acquisitions in recent years, and we will continue on this strategic path as this is a market in which we see sustainable long-term growth for our business and this outlook is supported by the build out targets for offshore wind capacity.”

OEG’s predecessor companies - Ferguson Seacabs, Containental and Vertec Engineering - were among the pioneers in the supply of equipment to the North Sea oil and gas industry.

The group, which employs about 1,000 people across its various operations, described the global market outlook for offshore wind as strong. The Global Wind Energy Council is expecting that more than 380 gigawatts (GW) of new offshore wind capacity will be added over the next decade, bringing total offshore wind capacity to 447GW by the end of 2032.

The new financing commitments totalling $140m comprise a $36m loan and a $104m revolving credit facility. The latter is provided by NatWest, Citi and Santander and the drawn term loan is provided by NatWest, Citi, Santander and Goldman Sachs.