Solstad Subsea Holding AS (“Solstad”), a wholly owned subsidiary of Solstad Offshore ASA, has signed transaction documents whereby Solstad will acquire a 35.8 percent ownership share in Omega Subsea AS – thereby further strengthening Solstad Offshore’s position in the subsea services segment. They are a market-leading provider of ROV, tooling, personnel, survey and project management services to the global subsea industry.
Omega Subsea has offices in Norway and the UK and has approximately 400 employees. For 2024, the company is expected to deliver revenue of approximately of NOK 800 million, with a result before tax of approximately NOK 100 million.
Omega Subsea’s revenue has more than trebled since 2022, with associated exponential growth in profitability. This growth has to a large degree been driven by its current cooperation with Solstad Offshore, where Omega Subsea delivers ROVs, tools and personnel to vessels operated by Solstad companies.
Solstad Offshore’s focus remains being an owner and operator of offshore vessels on dayrate-basis and have no intention of being a contractor, but its Services offering provides clients with access to more complete delivery.
“This investment strengthens our Service offering and gives us ownership in the solid competence that they hold. The cooperation with Omega Subsea provides customers with easy access to value-added services that they often require,” says Lars Peder Solstad, CEO of Solstad Offshore ASA.
Solstad Offshore’s investment will be settled partly in cash and partly through contribution-in-kind of its current 49.99 percent ownership in Omega Subsea Robotics AS.
“We expect the subsea services market to grow in the coming years, driven by investments in both oil and gas and new subsea infrastructure within renewable energy. The investment will enable Solstad Offshore to capitalise more strongly on this projected market growth,” adds Lars Peder Solstad.
Following completion of all transactions, Omega Subsea AS will own 100 percent of Omega Subsea Robotics AS. Shareholders will be Omega AS (60%), Solstad Subsea Holding AS (35.8%) and key employees of Omega Subsea (4.2%).
The transaction is subject to customary closing conditions including approval from the Norwegian Competition Authority, satisfactory due diligence and final transaction documentation. Completion of the transaction is expected in the first quarter of 2025.
For Solstad Offshore ASA the transaction will be reflected as an investment in associates and accounted for using the equity method in line with IAS 28. The transaction is expected to result in a minor accounting impact.
