Gone with the wind: Ezion banks on offshore windfarms as oil and gas industry flounders

It has three rigs being converted into windfarm units.

With growing uncertainty in the oil and gas industry where the firm is heavily-geared, Ezion is looking to find solace in its still-growing offshore windfarm segment.

According to a report by OCBC research, Ezion has three liftboats/service rigs being converted into windfarm units, and two of which are expected to start contributing to the firm’s revenue by 3Q.

Among its peers, Keppel Corp has also delivered the Seafox 5, a multi-purpose selfelevating platform for wind turbine installation and maintenance. Keppel Verolme has also built a mobile offshore accommodation barge for a German wind farm.

“Looking ahead, it will not be surprising if more offshore players pursue opportunities in this still-growing segment,” OCBC research noted.

Meanwhile, it will also be the first time that ezion is not undertaking bareboat or time charter contracts, but instead, the units will be chartered on a project basis for a specified period of time. This will prompt cost savings for a firm if the work finishes earlier.