With the global offshore wind farm industry forecast to grow in the coming years, companies are getting in early to win big. Marine and subsea solutions company MMA Offshore (ASX: MRM) is one of them, having bagged three contracts to support offshore wind farm developments in Taiwan during 2023.
Spanning 370 days, the contracts will boost the Company’s revenue by $30 million, with an additional potential of $15 million.
In March 2023 the MMA Pinnacle—an offshore supply ship—will go from Singapore to Taiwan to support Seaway 7, the constructor of the wind farms. MMA will utilise a combination of its vessel and subsea services to deliver services, like cable installation, ROV (remotely-operated underwater vehicles) and survey operations. The contract is for a firm period of 180 days with 90 days in extension options.
Another supply ship, the MMA Prestige, will provide walk-to-work accommodation support services (i.e. transporting people and equipment to offshore structures) for wind turbine maintenance operations in Taiwan. The contract is expected to commence in the second quarter of 2023 for a period of 130 days with a possibility to be extended by a further 60 days.
MMA’s Managing Director, Mr David Ross, commented. “We are extremely pleased to secure contracts for two of our larger vessels for a material portion of 2023 underpinning utilisation of our MPSV fleet. These contract awards also mark a major milestone in our diversification strategy with [the] offshore wind being a key target market for MMA into the future. We look forward to supporting our clients to deliver successful outcomes on these projects.”
The project also involves the use of the MMA Crystal, a multipurpose offshore vessel, with its integrated ROV, survey spread and A-Frame. It will undertake cable trenching (laying cables on the ground by digging trenches) and survey support services. This support contract is expected to commence in April 2023 for a period of about two months, with a possibility of a third.
Ross added, “It is very pleasing to see our Taiwanese flagged vessel, the MMA Crystal, secure an integrated support contract through our local Taiwanese entity MMA Clean Energy. This is an endorsement to our strategic entry into Taiwan to support the growing offshore wind market in the region.”
MMA had a great first half of FY23, with its revenue rising over 16% to $160 million. Its profits rose over 100% to $81.7 million, while its earnings got a 124.5% boost. The Company’s debt fell by nearly $50 million, and its vessel uptake also increased by over 80%. MMA has its diversification strategy to thank for that, seeing how 25% of its revenue came from outside of its traditional oil and gas markets.
It also saw increased demand for its subsea services, where revenue shot up by over 100%. The Company expects it to rain more contracts in FY24, as its key markets of oil and gas, renewables and government contracts pick up steam. Many large oil and gas projects are expected to take place between FY24 and FY26.
After suffering losses in 2021, following Covid protocols and supply chain issues, MMA has made an enviable comeback. And with organisations investing billions into greenfield projects, wind farms, and other key areas—and as the Australian defence sector increases spending on security infrastructure—the Company is gearing up to cater to greater demand.
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
- Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
- Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
- CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
Leave a Comment
You must be logged in to post a comment.