OEG Energy Nails $140 Million Deal, Gearing Up to Dominate Offshore Wind & Tidal Sectors
In a blockbuster financial move today, OEG Energy Group proclaimed successfully procuring a whopping $140 million capital infusion. With the financial backing of banking juggernauts like NatWest, Citi, Santander, and Goldman Sachs, the UK-centric offshore energy dynamo plans to scale new heights—literally—in wind and tidal power across the British Isles and beyond.
Venturing out from its traditional bedrock of oil and gas, OEG Energy is navigating the winds of change by setting sail into the burgeoning offshore renewables sector. The newly minted financial package consists of two segments: a long-term loan of $36 million and a $104 million revolving credit facility. Intriguingly, all banks mentioned above—barring Goldman Sachs—participate in both facets of this financing maneuver.
This high-impact development follows on the heels of the June inauguration of OEG's specialized offshore wind division. Armed with a plethora of offerings—from project management acumen to cutting-edge engineering and sea-worthy equipment—OEG's foray into offshore wind energy promises a cornucopia of operational synergies.
To cap it off, OEG Energy didn't just stop at announcing its good fortune. The company underscored the colossal growth potential of the global offshore wind market, pointing to future-gazing estimates by the Global Offshore Wind Energy Council. According to the council, the world could witness the addition of a staggering 380GW in new offshore wind capacity within the next ten years, catapulting the total global power to a jaw-dropping 447GW by the year 2032.
This move by OEG Energy is a capital-raising exercise and a clarion call for the titanic shifts expected in the renewable energy seascape. It's full steam ahead for this maritime energy pioneer.
John Heiton, OEG's CEO, said the financing announced today demonstrated the banks' confidence in the firm's "business model, growth prospects, and ability to play a meaningful role within the global energy transition."
"This financing provides OEG with further firepower, optionality, and flexibility to better pursue its growth objectives," he said.
"The global energy industry is changing, and OEG has adapted its business accordingly to ensure we are well positioned to provide critical high-value services tailored to address offshore challenges to the rapidly growing offshore wind and ocean energy industry."
The financing follows OEG's partnership announced earlier this year with investment funds Oaktree Capital Management, which also aimed to accelerate the firm's green energy growth plans.
Heiton said OEG was "passionate about its role in supporting a responsibly managed energy transition" and would use the financing announced today to continue expanding its renewables business, which he said was "a market in which we see sustainable long-term growth."
"We see exciting growth opportunities to expand our service offering in the offshore wind market and will utilize the proceeds of this financing, alongside the strong cash generation from the wider business, to maintain the Group's acquisitive growth strategy as we seek to enhance our profile and reputation as a leading provider of mission-critical logistics equipment solutions that provide an essential shield for the energy supplies that secures a better future for us all," he added.