Semco Maritime braving the deep waters
The surprising purchase of Esbjerg Oilfield Services has given Semco Maritime ballast leading to more international contracts. Singapore and Norway being important regions for an approach.
It resounded in the offshore industry when Semco Maritime one late day in August 2006 announced the acquisition of Esbjerg’s largest privately owned offshore company, Esbjerg Oilfield Services A/S (EOS), and its 550 employees.
Now the 100 days of honeymoon are over, and Semco Maritime’s staff of some 1,500 members and en expected turn-over for this year of some 1.4 billion DKK in several aspects are ready to make the jump into the deep waters.
“This year we expect to attract three to five rigs to Esbjerg for modification, but we are working hard to get jobs in the US, Holland, Portugal and Scotland, too. Our aim is to obtain as many jobs as possible in the Danish sector of the North Sea, and we would like to carry out the work in Esbjerg, but we shall not disregard jobs in other parts of the world, state Directors Jan E. Hansen and Erik Gaj Nielsen.
“Our aim is to obtain as many jobs as possible in the Danish sector
of the North Sea, and we would like to carry out the work in Esbjerg,
but we shall not disregard jobs in other parts of the world”, state
Directors Jan E. Hansen and Erik Gaj Nielsen here together with
Sales Manager Hans Peter Jørgensen.
By acquiring EOS Semco Maritime has got the production facilities and vital access to a jetty close to the sea – a deficiency previously limiting the opportunities of the company. Its aim is to attract projects for fabrication, typically modules for production units of up to 1,500 – or even 2,000 tons in order to tender for several of the Maersk Oil projects.
Another target for future growth is the enormous market in Norway, where Semco Maritime will use its new strength for building platform modules, FPSO and subsea construction.
Three important areas for projects
In the years to come Esbjerg’s largest offshore company will focus on three areas for its projects:
• Oil and gas projects
• Rig projects
• Power plants – minor and
medium-sized
Other business areas will be rental of manpower, engineering and fabrication.
“One might think that oil and gas projects and rigs are more or less the same, but the clients are widely dif-ferent, and the same goes for the ser-vices. The market for rig service generally is more international,” states Director Jan E. Hansen.
By having acquired a construction yard and an efficient sales organisation Semco Maritime can offer turn-key packages for operators, rig owners, main contractors as well as international construction yards. Lately the company has set up its own department in Singapore, the Mecca of the major rig owners. Hereby Semco Maritime gets closer to the dominating rig construction yards like Keppel Fels, Jurong and SMOE.
When talking rigs, Semco Maritime is strong when it comes to fire and communications representing the main part of its present contracts worth some 30 million DKK. After having established its own offices in Singapore this figure is expected to increase considerably.
Increasing activity in Norway
This year Semco Maritime is planning further activities in Norway.
“We are aiming at increasing our activities in Norway, offering engineering, too. When working for a Norwegian company it is important that project management and engineering are hand-led locally, and that is why we via acquiring, partnership or our own set-up intend to establish an engineering department here with a staff of 10-12 persons, as we already have several companies in Norway.”
Power plants for the whole world
In addition to extending the international offshore activities an important part of the present plan for growth, Ascendant 2007, will be to ensure a profile as a supplier of turn-key power plants. Semco Maritime succeeded in that respect last year, when it got the contract for setting up two power plants in the two Latin American countries, El Salvador and Guatemala, and handle the operation and maintenance for a period of ten years – a contract worth a bit in excess of one billion DKK.
“The power plant project was a success, and we have more major contracts in the pipeline. Our new plan for growth will be ready this year, and it calls for refining our present areas of interest. One of the major challenges will be to hire a sufficient number of employees especially within engineering and fabrication. Full employment in the Danish industry could limit our growth,” explains Erik Gaj Nielsen.
The head of Semco Maritime Power Plant Division, Hans Erik Andersen, estimates that the global market for smaller and medium-sized power plants is large enough to add another 500 million DKK in the years to come. He indicates that more projects are underway in Latin America, and Africa and Asia are interesting continents as well, seeing a massive demand for modernising and developing the supply of electricity.
So, in many ways the big world is open to Semco Maritime after a significant year in the history of the company, and the company long ago has been taken off the list of companies offered for sale by its parent company, C.W.Obel A/S.
Facts about Semco Maritime
The company is owned by the investment company C.W.Obel A/S investing in commercial buildings, Danish industries and the tobacco producer, Skandinavisk Holding A/S, providing the majority of its income.
Semco Maritime A/S in 2005 had its best year ever seeing a turn-over of 786 million DKK and a profit before tax of 33 million DKK. Its latest purchase, Esbjerg Oilfield Services A/S, in 2005 had a turn-over of 414 million DKK and a minor deficit, mainly due to some major projects not being completed before the end of the year.
This year Semco Maritime and its 1,500 employees expect a turn-over of some 1.4 billion DKK.
