Solstad buys into Omega Subsea

Solstad Subsea Holding, a wholly owned subsidiary of Norwegian shipping company Solstad Offshore, is set to acquire a 35.8% ownership share in Norway’s ROV, tooling, personnel, survey and project management services provider Omega Subsea.

Established in 2012, Omega Subsea, with offices in Norway and the UK, and employing approximately 400 persons, is for 2024 expected to deliver revenue of approximately NOK 800 million (almost $70 million), with a result before tax of approximately NOK 100 million (some $8.7 million).

According to Solstad, Omega Subsea’s revenue has more than trebled since 2022, with associated exponential growth in profitability – a growth said to have largely been driven by its current cooperation with Solstad Offshore, where it delivers ROVs, tools and personnel to vessels operated by Solstad companies.

“This investment strengthens our Service offering and gives us ownership in the solid competence that Omega Subsea AS holds. The cooperation with Omega Subsea provides customers with easy access to value-added services that they often require,” said Lars Peder Solstad, CEO of Solstad Offshore.

The purchase price has not been disclosed, however, Solstad noted that the investment will be settled partly in cash and partly through contribution-in-kind of its current 49.99% ownership in Omega Subsea Robotics.

“We expect the subsea services market to grow in the coming years, driven by investments in both oil and gas and new subsea infrastructure within renewable energy. The investment in Omega Subsea will enable Solstad Offshore to capitalize more strongly on this projected market growth,” Solstad said.

Solstad Offshore said its focus remains on being an owner and operator of offshore vessels on day rate-basis and it has no intention of being a contractor.

Following completion of all transactions, Omega Subsea will own 100% of Omega Subsea Robotics. Shareholders of Omega Subsea will be Omega AS (60%), Solstad Subsea Holding (35.8%) and key employees of Omega Subsea (4.2%).

The transaction is subject to customary closing conditions including approval from the Norwegian Competition Authority, satisfactory due diligence and final transaction documentation. Completion is expected in the first quarter of 2025.

Omega Subsea Robotics was established in 2022 as an industrial collaboration between Solstad Offshore and Omega Subsea, with the goal of making joint investments in ROV systems and associated equipment. 

The company has an ROV fleet consisting of 12 integrated and ordered ROV systems. Eight systems are already mobilized onboard selected Solstad vessels while the four remaining ROVs are planned for integration throughout 2025.