Twin-track approach to offshore markets pays dividends at HEA Energy

Asked to describe prospects in the segments of the oil and gas sector in which the company principally operates, Mr Elali said HEA Energy continues to see healthy demand for offshore accommodation and support vessels, particularly for brownfield, maintenance and production support campaigns.

“That work is tied to keeping producing assets running, not to exploration or discretionary greenfield spend, so it holds up across the price cycle and is the least cyclical part of the value chain,” he told OSJ. “Despite recent regional tensions, it has been business as usual in the Gulf, and we have successfully commenced new contracts during this period.”

Asked what proportion of the company’s revenues come from oil and gas and offshore wind, and whether he expects that this will change in the next three to five years, Mr Elali said the company’s aim is that EBITDA is generated approximately 50/50 between the two markets. “But given the geographical flexibility of the fleet,” he explained, “we will continue to pursue opportunities globally as they arise and make deployment decisions based on where we see the spread between charter rates and opex as most attractive.”

In recent months, HEA Energy has invested in new assets. Asked if the company has more newbuilds on order, or is contemplating them, Mr Elali said the company has 16 vessels on the water currently, the majority of which are jack-up barges, also known as self-elevating support vessels, with the remainder being OSVs. “We have an orderbook which will take us to a total of 29 by the end of 2027,” he explained.

“Currently we don’t plan on ordering anything further than what we have under construction. That said, our approach has always been to stay ahead of where our clients are heading and to have the right tonnage ready before the demand arrives. That is why we’re where we are today. 

“Any future additions would be made through that lens, positioning for the next wave of requirements as the installed base ages and service needs evolve, rather than speculative ordering. We would likely only add vessels to the fleet against firm contract cover.”

Asked where the company’s greatest opportunities are and what are the greatest challenges it has to overcome, Mr Elali said HEA Energy’s biggest opportunity is the flexibility it has to support the offshore wind and offshore oil and gas markets with a modern, versatile fleet as the capex cycle in GCC states and the North Sea operations and maintenance super-cycle gather pace. 

“Our fleet averages a few years old against a market average in the teens, which makes us the natural partner as end users raise the bar on spec and safety,” Mr Elali concluded. “The main challenge is ensuring vessel availability keeps pace with demand while meeting increasingly stringent regulatory and client requirements.”