Subsea service firm Rovop said it is on a “strong growth trajectory” after securing contracts valued at £25million in the last six months.
The Aberdeen headquartered business, which is marking its tenth anniversary this year, has won a diverse spread of work across offshore energy sectors in Europe, Middle East, Asia Pacific and the Americas.
The contract wins, along with a financial restructure in 2020, have placed Rovop in “robust financial health” with positive cash flow and available working capital to invest in its people, services and its fleet to meet future demand, the company said.
The new contracts involve dive support, inspection, repair and maintenance (IRM), decommissioning, cable lay and construction surveys for new clients, Prysmian Group and Mermaid Subsea Services Thailand, among others.
Rovop has also renewed existing contracts in the offshore wind sector after investing in its fleet with the addition of two Schilling HD work-class ROVs, both of which will be deployed on a Scottish wind farm for EDT Offshore.
Neil Potter, the company’s chief executive whose appointment was announced the same time as the refinancing, paid tribute to the company’s employees who faced working “under the most difficult conditions we have ever faced as a result of the pandemic”.
He said: “Despite the unprecedented challenges of the last 18 months, Rovop has performed exceptionally well.
“This is testament to the dedication, hard work and loyalty of our people, who have been operating under the most difficult conditions we have ever faced as a result of the pandemic.
“The quality of service they provide along with the cutting-edge ROVs in our fleet have enabled us to secure new work and win renewals to existing contracts.”
A decade of change
Mr Potter reflected on the ten years since Rovop first started.
“Having started out ten years ago focussing on the offshore wind sector and then diversifying into oil and gas, it is fitting that, as we celebrate this milestone of a decade in business, we are reporting major new contracts in renewables,” he said.
“We now have a healthy spread of contracts in offshore energy sectors and geographic locations around the world performing seabed surveys, UXO identification, boulder clearance, construction and cable installation support and IRM.”
Are oil and gas skills really right for renewables?
Mr Potter said that, while it’s widely acknowledged that companies operating in oil and gas can transfer their skills into offshore wind and vice versa, it’s not always as straight-forward as it appears.
“There are some fundamental differences between the sectors,” he said. “But with our experience and track-record in renewables, we understand these and know how to adapt our service and technology for each.
“Oil and gas remain very important to us and crucial to meeting global demand for energy as we transition to cleaner, greener sources.
“But we are equally well-positioned to capitalise on the huge opportunities for growth in offshore wind, particularly in the US, where our proven capability in supporting windfarm developments in the North Sea and across the globe present a compelling proposition for developers.”
Rovop employs 200 people offshore and onshore from bases in Aberdeen and Houston, and additional offices in Dubai, the Netherlands and Singapore.
Last year, the firm welcomed a cash boost from its investors, including BGF (formerly the Business Growth Fund) and London-based private equity firm Blue Water Energy (BWE).
The July 2020 refinancing comprised a cash injection of £5m from it’s existing investors alongside a “major secured creditor”, as well as debt restructuring to stabilise the business. As a result, the firm said it had available working capital and positive cash flow to fund future growth.