JUST months after its creation, South Perth-based offshore oil and gas support specialist GO Marine Group is planning a $300 million assault to become Australia’s biggest offshore services fleet operator.
JUST months after its creation, South Perth-based offshore oil and gas support specialist GO Marine Group is planning a $300 million assault to become Australia’s biggest offshore services fleet operator.
Established in June through a merger of well-established offshore services group GO Offshore and transport logistics provider Guardian Marine, Go Marine is now Australia’s only fully integrated marine oil and gas logistics group.
Operating mostly out of Karratha and Port Hedland, the group operates across the entire logistics chain, from warehousing services to fast response vessels, utility tugs, offshore vessel crewing, ship management and oil rig movement.
It also undertakes all inner-harbour port services at Port Hedland, Exmouth and Dampier.
In addition, it operates vessels as far afield as eastern Russia, Bass Strait and Singapore.
But despite employing more than 650 people and working for most major oil groups including Woodside, Chevron, ExxonMobil, Shell and Santos, it remains relatively unknown outside the industry.
That is all set to change, with the company now finalising a $150 million equity injection from a major international group that will provide the launch pad for a massive expansion of Go’s business.
Managing director, Captain Garrick Stanley said the latest deal would enable Go to invest more than $300 million on expanding its fleet of owner-operator vessels.
“We’re equity raising now to get the capital to grow the business,” Mr Stanley told WA Business News.
“They (the incoming partner) will be putting in $100 million to $150 million, which will enable us to then acquire $300-$400 million of (shipping) tonnage.”
The deal will dilute the stake of Go’s existing shareholders to around 49 per cent, but will enable it to effectively double its fleet of owner-operator vessels to between 24 and 30.
It will also enable it to acquire more higher tonnage offshore vessels up to 200 tonnes, such as platform supply vessels (PSVs) and oil rig supply vessels.
At the same time, Go will increasingly focus on owner-operated vessels, which generate twice the margins possible by operating and crewing third party vessels.
Mr Stanley said building Go’s shipping capability to take advantage of the surge in offshore work opportunities should enable it to grow even faster than its already frenetic pace.
“We see revenues for us in the next two-three years … of probably $600 million to $1 billion,” he said. “Last year we did $80 million, and this year we’ll do $150 million, so it’s been rapid growth. The next 12 months for us are going to be good, but 2011, 2012 and 2013 are just going to explode.”
Mr Stanley also flagged a careful expansion of Go’s business outside Australia with the support of its new backer.
“Asia is a big play for us,” he said. “At the moment Australia is our core, but we will branch out. Rather than all these foreign companies coming here, we want to be an exporter.”
Go executive director Justin Cardaci said the equity investment should be finalised by March. Looking further ahead, Go was targeting a public float in three to five years.
