2021 Market Outlook and Where Conbit Stands

When everything suddenly changes, you’re forced to adapt and to come back stronger: improving both what you do and how you do it. Here at Conbit, we’ve learned plenty of lessons from 2020, and have used these lessons to transition for the better. 

Despite the multitude of challenges, we’ve managed to continue our strong growth path this year. We’ve used our infectious positivity and industry-leading expertise to go the extra mile for all our clients, resulting in some fantastic projects that went above and beyond expectations.

Next year will bring its own challenges. However, we firmly believe that challenges force us to bring our best—so we welcome any obstacle with open arms. Throughout this blog, we’re going to dive into our outlook for 2021.

Offshore oil and gas

Despite rumors predicting the end of the oil and gas era, global peak consumption isn’t expected until 2030—so operators will be needing Conbit’s expertise for many years to come. Three factors will play a crucial role in determining Conbit’s growth going forward:

  • Our clients will be forced to both produce more and to produce more sustainably. We, therefore, anticipate a growing demand for replacing equipment so that clients can meet new emission guidelines.
  • Due to political uncertainties that are impacting global trade, we expect brownfield investments to pick up. Conbit’s expertise means that we add substantial value to brownfield projects.
  • Oil and gas majors will shift the budget from capital to operational expenditure. Assets will be kept in the field for a prolonged length of time, which will require upgrading existing facilities.

Decommissioning

Conbit first established itself in the decommissioning market in 2019 by flawlessly executing an extensive removal preparation campaign in Denmark. While we experienced a slow-down in the market over the past year, we strongly and expect increased activity in 2021. 

By adding a cost estimator to the team, we’ll be able to further support heavy lift contractors during the tender phase. We also believe the industry will continue its focus on cost-effectiveness, leading to an increased focus on budget control, which will exert further pressure on the supply chain. We, therefore, predict that contractors will be generally requested to provide turnkey costs in their quotes.

Offshore wind

The offshore wind market has matured significantly. Many wind farms are now entirely operational, and the first removal projects are in the planning phase. Floating wind farms will greatly aid countries that are surrounded by deep waters. By 2030, we estimate that around 600 to 700 floating offshore wind turbines will be installed worldwide. 

Conbit is playing an increasing role in operating and maintaining offshore wind farms on behalf of European developers. Thanks to the Mammoet global network, we’re now also ready to expand these services worldwide. 

The development of a replacement system for heavy components inside floating wind turbines is in full swing. We’re currently in contact with turbine manufacturers to solve the last of the outstanding technical issues. We expect to officially launch the new system in Q3 of 2021.

Requirement for diversification

We recognise that diversification will play a key role in allowing us to be less dependent on the oil and gas industry. Our ambition going forward is to grow a more diverse service portfolio. In 2021, we expect to expand geographically and to increase the amount of new business within our portfolio.

If we want to grow our company then we need to also invest in our people. We’re going to be pouring more investment into our current team, as well as working to increase the number of staff that we employ and hopefully attracting some of the most talented people around the world.

Integration with Mammoet

We completed our exciting merger with Mammoet in 2020, meaning our combined service portfolio can now add increased value to all our global clients.


Outlook

This year, we used our positive mindset to embrace the myriad of changes and challenges thrown our way. We grew our business despite tricky circumstances, consistently outperforming expectations.

We firmly believe that we can have a positive impact on everyone we work with and that we can overcome any hurdle by working closely with our clients. We hope to meet you all online or in person next year. More importantly, we hope that you all stay safe, healthy, and happy.


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