Market Outlook for 2021: Where Does Conbit Stands?

Offshore Oil & Gas

Despite rumors predicting the end of the oil and gas era, global peak consumption isn’t expected until 2030. Hence, operators will need 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 produce more and produce more sustainably. We, therefore, anticipate a growing demand for replacing equipment so that our clients can meet new emission guidelines.
• Due to political uncertainties 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 time, requiring 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 are strongly expecting increased activity in 2021.

By adding a cost estimator to the team, we’ll be able to support further heavy lift contractors during the tender phase. We also believe the industry will continue its focus on cost-effectiveness. This will lead to an increased focus on budget control, exerting 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 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 Mammoet’s global network, we’re 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 outstanding technical issues. We expect to officially launch the new system in Q3 of 2021.

Requirement for diversification

We recognize 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 planned to expand geographically and increase our portfolio’s number of new businesses.

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

Intergration with Mammoet

We completed our exciting merger with Mammoet in 2020.  Our combined service portfolio increased value for all our global clients.

Outlook

This year, we used our positive mindset to embrace the myriad of changes and challenges presented to us. Conbit grew its business despite tricky circumstances, consistently outperforming expectations.

We firmly believe that we can positively impact 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 you all stay safe, healthy, and happy.

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