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ESVAGT awaits growth in wind, and pressure in oil & gas

Press Release   •   Dec 20, 2018 09:30 CET

Peter Lytzen takes a look at ESVAGT's strategy after his first 100 days as CEO.

ESVAGT is steering towards a great deal of offshore wind opportunities and a close fight in the oil & gas market in the coming years. New markets and new endeavours are to contribute to growth strategy.

ESVAGT’s barometer shows a continued growth in offshore wind and a close fight for each contract in the offshore oil & gas market.

‘We see a continued development of the offshore wind market, where we expect growth potential, both in our existing and in new markets. We have competences and expertise that are coveted – we must take advantage of this’, says Peter Lytzen, CEO:

‘At the same time, we expect a close fight for each contract in the offshore oil & gas market, due to the market’s overcapacity. This will influence the market’s development in the coming years’, adds Peter Lytzen.

Both tendencies leave their mark on the strategy that ESVAGT has prepared to ensure future growth.

ESVAGT into the North American wind market

ESVAGT’s fleet of Service Operation Vessels (SOV) designed for the wind industry will grow in both the current market in the neighbouring North Sea and Baltic Sea, as well as in new markets in North America. Together with a strong partner, ESVAGT is establishing a joint venture on the American East Coast, which will ensure an entry ticket to a dawning high potential market:

‘We observe a change in North America that shows evident opportunities for operators with our competences. Focus is turned towards quality, safety, innovative solutions and efficiency – all of them being parameters in which ESVAGT is strong and has proven its worth’, says Peter Lytzen.

A change in ownership translates into possibilities

The North Sea also holds potential for more SOVs, not least due to the changing nature of the current service contracts, which happens when turbine manufacturers sell their farms.

‘Operating wind farms in the North Sea will increasingly come into play as manufacturers sell the farms. The new service contracts hold potential for ESVAGT, which we will embrace by increasing the value of the service we offer’, explains Peter Lytzen.

This will, along with other endeavours, happen through ESVAGT Services, in which ESVAGT will be able to offer even more solutions for customers thanks to strategic partnerships – solutions such as inspections and service maintenance.

‘We have the vessels in place in the wind farms, but lack the specialists; likewise, the specialists lack the vessels and a presence in the farms. We both benefit from a combination’, says Peter Lytzen.

Price pressure affects oil & gas

ESVAGT’s oil & gas business will be met with tough competition in the coming years. There is an overcapacity in the market for Emergency Rescue and Response Vessels (ERRV), and this can easily be perceived:

‘One needs to truly fight for contracts in the ERRV market, as there are many takers; a situation which we expect to be stable. At the same time, we need to grab the possibilities that also exist, such as the fact that ESVAGT has an environmentally conscious fleet trained in working in harsh climates. There will be opportunities in the northern part of the UK sector and in the northern part of Norway, also for newbuildings similar to the ‘Esvagt Aurora’, which operates in the Arctic regions with great success’, says Peter Lytzen.

About ESVAGT

ESVAGT is a dedicated provider of safety and support at sea and a market leader within offshore wind solutions. 

We support the offshore Oil & Gas industries with a wide range of specialized services: Standby, Emergency Response and Rescue Vessels (ERRV), Oil spill response, Firefighting, Tanker assists, Rig moves, Supply services and Interfield transfer of cargo and personnel.

We service offshore wind farms and have a fleet of dedicated Service Operation Vessels (SOV), which ESVAGT pioneered in 2010. The SOVs provide accommodation for technicians, spare time facilities, offices and conference room, storage for small turbine parts, workshops, etc. The SOV offers flexible personnel and equipment transfer capabilities by either Walk-to-Work gangway system or Safe Transfer Boats.

ESVAGT was founded in 1981 and has a fleet of more than 40 vessels and approximately 900 employees on- and offshore.