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Joelton
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15-Jul-2025 11:53
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Mooreast forms partnerships with Norwegian and Korean firms
Mooring specialist Mooreast Holdings has partnered with Norway-based GeoProvider AS to strengthen capabilities in offshore data analysis and enhance its value proposition to the floating offshore renewable energy market.
Under this partnership, Mooreast will tap into GeoProvider&rsquo s extensive geotechnical and geophysical database to accelerate data analysis and support larger, more complicated projects.
Both parties will also collaborate on offshore wind projects as the floating renewable market transitions towards the commercialisation phase.
" The agreement with GeoProvider reflects our strategy to build strong partnerships that add value to our clients and increase our capability to take on larger and more complex projects," says Eirik Ellingsen, CEO of Mooreast.
" GeoProvider&rsquo s strong track record complements our core competencies as a mooring specialist, allowing us to better meet the demands of the global offshore market.&rdquo
In addition, Mooreast has also signed an MOU with Korea Ocean Engineering & Consultants Co to promote joint business and technology collaboration in offshore mooring and seabed anchoring solutions.
KOCECO, according to Mooreast, has extensive experience in submarine cable laying and underwater engineering services.
Mooreast says this MoU lays the groundwork for future cooperation in the rapidly developing floating offshore wind market in North Asia, which Mooreast is eyeing.
&ldquo The two agreements will significantly strengthen Mooreast&rsquo s global position and our commitment to our transformation to serve the renewable energy sector.
" Through these partnerships, we are now better equipped to deliver a comprehensive solution for the offshore sector,&rdquo says Ellingsen.
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Joelton
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20-Jun-2025 11:59
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Game plan for CDL and CDLHT to extract value from Delfi Orchard
Recent privatisations in the listed tourism-related space underscore the intrinsic value embedded within listed property and hospitality S-REITs, especially for those with prime assets located along Orchard Road. The recent privatisations include Amara Holdingsand Paragon REIT.
Currently, hospitality S-REITs and selected developers are trading at discounts of between 20% and 50% to their book values, emphasising the disconnect between public and private market valuations.
With prime assets in and around Singapore&rsquo s city centre and more patients and private capital, developers are drawn to opportunities in the listed space to repurpose these assets for alternative uses.
As the value-unlocking theme continues to play out, investor interest in several other counters has also picked up. According to DBS Group Research analysts Tabitha Foo, Geraldine Wong and Derek Tan, the next big opportunity lies within CDL Hospitality Trusts(CDLHT) and sponsor City Developments (CDL), with the potential repurposing of Delfi Orchard, which comprises Orchard Hotel and Claymore Orchard. They believe this strategy could unlock significant value for both companies.
In their June 13 report, rhe analysts stated: &ldquo A new integrated development that emerges will offer significant upside for both companies. A win-win strategy would be for CDLHT to divest all or part of its stake in their properties to CDL for the redevelopment, a scenario which could play out in the foreseeable future.&rdquo
Additionally, the government has signalled its support by introducing initiatives such as the Strategic Development Incentive (SDI) Scheme and CBD Incentive Scheme, as well as extending the Additional Buyer&rsquo s Stamp Duty (ABSD) remission deadlines for complex &ldquo urban transformation&rdquo projects by six to 12 months.
While the analysts see the government support as a positive sentiment for developers with older properties in Orchard Road and the Central Business District (CBD) areas, they also believe that the next redevelopment to watch is Delfi, located at the junction of Tanglin Road and Orchard Road, and opposite a proposed development site owned by Hotel Properties(HPL).
Unlocking Delfi&rsquo s potential
CDL acquired Delfi Orchard for $439 million in May 2024, but its real &ldquo holding cost&rdquo is much lower. Delfi Orchard sits adjacent to CDLHT&rsquo s 656-key Orchard Hotel Singapore and Claymore Connect mall. Although Orchard Hotel was sold to CDLHT in 2006 with a 75-year extension option (56 years remaining), CDL retains the freehold reversionary interest in both the hotel and the mall beyond 2081. &ldquo We believe the Delfi Orchard acquisition could pave the way for a larger, integrated redevelopment encompassing all three assets,&rdquo say the analysts.
Recently, the group divested a 50.1% stake in the South Beach mixed-use project for $2.75 billion to joint venture partner IOI Properties Group. This deal is one of CDL&rsquo s largest divestments. DBS sees this as a major step for the group towards its deleveraging strategy, with net gearing expected to drop by 14 basis points (bps) to about 103% once the divestment is completed. This will support strengthening of the group&rsquo s balance sheet and create financial headroom.
&ldquo We believe that CDL will be better positioned to capitalise on the significant unrealised value embedded in its portfolio,&rdquo say the DBS analysts, who view the divestment as not a downsizing of the group&rsquo s portfolio but rather a strategic reallocation of capital and optimisation of debt capacity to refocus on the group&rsquo s core competencies in residential development and hospitality.
The group is currently undertaking two major redevelopment projects &mdash Union Square (formerly Central Mall and Central Square) and Newport Plaza (formerly Fuji Xerox Towers). Both developments are being transformed into mixed-use developments.
While no specific plans have been announced for the potential redevelopment of the three Orchard assets, the analysts have explored three possibilities: unchanged gross floor area (GFA), 30% uplift to GFA and 50% uplift to GFA, along with the potential increase in gross development value (GDV) and RNAV for CDL. The key to achieving this will depend on CDL working with CDLHT to pursue a win-win outcome for both listed entities.
If CDL and CDLHT decide to redevelop the three Orchard assets, the overall costs could come up to about $1.4 billion to $2.0 billion, depending on the additional GFA approved by the URA.
&ldquo Our estimates exclude any lease top-up assumptions, as Delfi Orchard is freehold and CDL retains the freehold reversionary interest in Orchard Hotel and Claymore Connect upon lease expiry in 2081,&rdquo say the DBS analysts. They also assume that while the current zoning permits a gross plot ratio (GPR) of only 4.9, the existing GPR may be retained or redeveloped without incurring a development charge. A land betterment charge (LBC) would apply only to any increase in GFA beyond the existing level.
They anticipate the new mixed-use development will feature a sizeable residential component, enabling partial monetisation upon launch. It is also likely to include a hotel component, a core competency, while the retail portion is expected to be relatively limited in scale to serve the needs of residents and guests. (See Table 2)
Buy calls for both entities
DBS Group Research has &ldquo buy&rdquo calls for CDL and CDLHT with a target price of $6.70 for CDL. The analysts believe that extracting value from assets in its books would offer investors more comfort that the group remains on a value-accretive growth path.
&ldquo In our scenario analysis, we assume three development schemes ranging from a 0% to 50% increase in GFA to be achieved under the government&rsquo s SDI scheme. We forecast a GDV between $2.0 billion and $3.2 billion for the new mixed-use development, translating to a valuation uplift of around $1.2 billion to $2.4 billion. This could raise CDL&rsquo s RNAV by up to 74 cents/share, which we believe is not priced in by the market yet,&rdquo say the analysts.
The research house has a target price of $1.10 for CDLHT and anticipates a significant upside for CDLHT from its Orchard Hotel and Claymore Orchard assets valued at $637 million.
&ldquo Assuming the GFA for the new development is raised by 50%, we see CDLHT selling the assets at 50%&ndash 75% above current book value, implying an exit price of between $960 million and $1.1 billion,&rdquo say the analysts.
They see two ways in which a potential swap of the Orchard Hotel site for two new prime Singapore hotel assets could unfold. In the first scenario, CDLHT exits through a full stake sale of Orchard Hotel and Claymore Connect to CDL, unlocking about $1 billion in proceeds. The second scenario, which is the preferred option of the DBS analysts, is for CDLHT to sell a 75% stake in the Orchard site to reap proceeds of about $717 million. CDLHT retaining a strategic stake in the future integrated development could serve as a potential medium-term pipeline asset.
The capital extracted in both ways could be used to fund the purchase of Moxy Hotel ($475 million), expected to be completed in FY2026/FY2027, given out as special dividends or reinvested to retain a partial stake in the new development.
&ldquo This deal could alleviate concerns of equity fundraising, which at current levels, would be dilutive. At a base scenario of 50% GFA upside, we estimate 25 cents per share upside to book value. Using an average 0.7 times P/B target, CDLHT could trade closer to $1.20 per share,&rdquo say Foo, Wong and Tan.
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Joelton
Supreme |
06-Jun-2025 08:18
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Amid swaying industry conditions, Mooreast gears up to capture more contracts
Mooreast Holdings is no stranger to volatility. From the cyclical swings of the oil and gas sector to the growing pains of renewable energy, the company, which specialises in providing anchoring gear for floating structures, has spent the better part of three decades learning to survive and adapt.
It was incorporated back in 1993 and listed on the Singapore Exchangein November 2021. However, few periods in its history have tested it quite like the past 18 months.
In its latest FY2024 ended Dec 31, 2024, the group saw losses widen to $2.2 million from a loss of $1.9 million a year ago. This comes on the back of revenue also declining 13% y-o-y to $25.1 million.
Mooreast, while not having any formal dividend policy, has yet to dish out dividends to shareholders. Since listing, Mooreast shares have declined by about 53% to trade at 11 cents on June 4.
FY2024 was the group&rsquo s weakest set of results since listing. The poor showing was attributed to a slowdown in market activity, especially in renewables, where project delays and permitting issues disrupted delivery timelines.
After the lacklustre financial year, Mooreast early this year faced further issues as it lost a key investor and the group&rsquo s CFO resigned just four months into the role, citing &ldquo personal reasons&rdquo .
Amid the rubble, Mooreast has appointed a new chief executive tasked with bringing the company back on course. At the helm since Jan 1 is Eirik Ellingsen, a seasoned Norwegian executive with nearly 40 years of experience in offshore energy.
&ldquo I&rsquo ve known Mooreast since 2008 or 2009,&rdquo Ellingsen tells The Edge Singapore. &ldquo We were neighbours in Loyang and we kept in touch over the years. When the opportunity came up, I knew it was time.&rdquo
Since stepping in, Ellingsen has wasted no time rebuilding the group&rsquo s internal structure, sharpening its focus on target markets and preparing Mooreast to ride the next wave of growth, driven largely by floating offshore wind.
&ldquo We&rsquo ve implemented quite a few new routines that improve efficiency,&rdquo he says. &ldquo We&rsquo ve restructured reporting lines and made responsibilities clearer. It&rsquo s about getting the organisation aligned so we can move as one.&rdquo
A troubled year
Aside from a lacklustre FY2024, the company was dealt a heavy blow when a planned $20.01 million investment collapsed early this year. The funds were meant to support the group&rsquo s growth ambitions, including the acquisition of a new shipyard in Singapore. Despite having signed a term sheet and undergoing initial due diligence, the investor withdrew unexpectedly.
&ldquo From the company&rsquo s perspective, we did the best due diligence we could,&rdquo says Ellingsen. But after the term sheet, Ellingsen shared that the China-based investor decided on a whim not to pay the $1 million deposit and eventually the entire deal was cancelled. &ldquo It was beyond our control,&rdquo he said.
Ellingsen insists that the $20 million was not essential for immediate survival. &ldquo It was intended for expansion, not operational cash flow,&rdquo he clarifies. &ldquo We&rsquo re still interested in investors, but we&rsquo re being more cautious now. We&rsquo re insisting on deposits upfront before entering serious negotiations.&rdquo
Internally, the group began reviewing its budgeting and pipeline planning early last year. &ldquo We started in January with a goal to turn the company around,&rdquo he says. &ldquo We&rsquo ve looked closely at our costs, our manpower and our pipeline. There are good projects in the pipeline. We just need to execute.&rdquo
New waves
One of Mooreast&rsquo s most decisive moves so far has been the acquisition of a new shipyard facility from Seatrium last June. The $13.5 million deal gives Mooreast access to 100,000 sqm of land at 60 Shipyard Crescent, four times the size of its existing facility in Pioneer.
&ldquo We are now able to scale up production significantly and position ourselves for much larger contracts,&rdquo says Ellinger. This could be a game-changer for the group.
While the group did not share if the $20 million investment was supposed to fund this acquisition, Ellingsen shared that the group will be funding this acquisition through internal resources. The acquisition is not yet completed.
Mooreast is one of only three companies globally that manufacture mooring anchors for floating offshore wind projects. Uniquely, it does so entirely in-house and indoors &mdash a capability that Ellingsen believes will become increasingly critical as the offshore wind industry scales.
&ldquo Over the next five years, we expect at least 72 offshore projects in the pipeline across the industry in Asia and Europe. That would come up to about 20 gigawatt (GW) of floating wind,&rdquo says Ellingsen, explaining that 1GW requires about 400 anchors.
If the acquisition of the Seatrium shipyard is successful, the group&rsquo s production capacity should increase by at least four times, allowing it to bid for larger projects that are coming up.
&ldquo We need the capacity to say yes to more such projects,&rdquo says Ellingsen, hoping to capture a significant amount of the 72 upcoming projects. &ldquo Our goal is to be ready with manufacturing capacity when final investment decisions are made, expected from 2H2026.&rdquo
The group is targeting several high-potential markets. In Taiwan, Mooreast is positioning itself for the government&rsquo s next offshore wind auction, which is expected to include floating wind. &ldquo There are eight zones being prepared and eight developers ready to bid. Taiwan has come a long way in offshore wind,&rdquo Ellingsen says, as the group has recently expanded its presence in Taiwan.
Meanwhile, in Malaysia, Mooreast has set up a subsidiary and secured a Petronas licence to participate in the offshore drilling projects. &ldquo Malaysia is a unique market. You can&rsquo t just walk in as a foreign company and start bidding. But now that we have the necessary certification, we expect to see opportunities open up in the next 12 months,&rdquo he adds.
The company is also planning to expand in Europe. It already has a presence in the UK and is studying opportunities in France, Italy and Norway.
Though it does not plan to enter the US market, Ellingsen believes Europe will remain a stronghold for floating wind, particularly as supply chain capacity continues to lag behind demand.
&ldquo In the next five years, more than 20GW of floating wind is coming online. That&rsquo s billions of dollars in contracts. If we play our cards right, Mooreast could be a key supplier in this transition,&rdquo he says.
High-stake pivot
Even as Mooreast doubles down on renewables, its traditional oil and gas business continues to provide near-term cash flow. The company has ongoing projects in Thailand and Malaysia and the recent uptick in drilling activity across Europe could also translate to higher demand for mooring systems.
Globally, the energy transition is happening in stages. In Asia, slow permit processes and unclear regulatory frameworks remain key hurdles. &ldquo In Korea, for example, you need around 20 different licences before starting work on a single floating wind project,&rdquo says Ellingsen.
Political uncertainty has also played a role in delaying project execution. In several countries, national elections have postponed the launch of clean energy programmes. &ldquo But we&rsquo re slowly seeing progress. The momentum is there,&rdquo he says, adding that these delays eventually affected the group&rsquo s FY2024 results.
To hedge against delays, Mooreast has adopted a two-pronged approach &mdash supporting both short-cycle oil and gas projects and long-term renewables. &ldquo Some of our revenue is still project-based, but we do have rental equipment that provides recurring income.&rdquo
Still, funding expansion remains a challenge. While the Seatrium acquisition will be funded using internal cash reserves, the group may consider increasing its gearing and is in talks with a few alternative investors, but has yet to share more about that.
&ldquo We want to have the manufacturing capacity in Singapore,&rdquo he says. &ldquo But if we can&rsquo t get what we need here, we&rsquo re also looking at Malaysia. The important thing is to stay in control of our production and be ready when the orders come.&rdquo
In the meantime, the group is actively bidding for several floating offshore wind contracts, with the aim of receiving main purchase orders by end-2025. &ldquo That gives us time to build the infrastructure we need. But we can&rsquo t afford to wait until the last minute,&rdquo Ellingsen adds.
He is also aware of external risks, including geopolitical instability and macroeconomic headwinds. However, he remains confident in the company&rsquo s long-term prospects. &ldquo We&rsquo ve already delivered systems for 86 megawatt of floating wind &mdash that&rsquo s 30% of what&rsquo s been deployed globally so far. We&rsquo re in the game.&rdquo
Mooreast&rsquo s transformation is far from complete. But under Ellingsen&rsquo s leadership, the group is showing signs of renewed focus, ambition and discipline. The real test will come over the next two years as the floating wind sector moves from pilot projects to full-scale commercial deployments.
For now, Ellingsen is keeping his eye on the horizon. &ldquo The long-term outlook is bright,&rdquo he says. &ldquo There will be more renewable projects than we can handle. Everyone will be sold out and we want to make sure we never have to say no to a purchase order because we weren&rsquo t prepared.&rdquo
If Mooreast succeeds in executing its plan, the company could find itself not just back in the black, but at the centre of one of the most critical industrial transitions of the century.
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Joelton
Supreme |
28-Jan-2025 14:51
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Mooreast' s CFO resigns four months into the job
Siu Yeung Sau, chief financial officer of Mooreast Holdings , has resigned after some four months in this role.
The company announced that Siu has resigned and that his last day will be Feb 17. He was appointed to this role on Oct 1 2024.
According to Mooreast, Siu quit for " personal reason" .
" There are no concerns with regards to financial reporting" and that there are no disagreements between Siu and the board " with regards to practices that would have an impact to the company' s financial reporting" , the company says.
Siu' s last known role, as disclosed by the company, was the financial controller of Biolidics , another SGX-listed company, between June 2022 and May 2024.
He was previously with other listed companies such as Mary Chia Holdings and EuroSports Global, holding similar roles.
Mooreast is looking for alternative funding after an earlier $20.1 million convertible loan provider did not pay up the deposit on time.
Mooreast shares last traded at 11 cents.
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Joelton
Supreme |
06-Jan-2025 10:05
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Mooreast looks for alternative funding after deposit for $20.01 million convertible loan deposit missed deadline
Mooreast Holdings is looking for alternative funding after it did not receive a $1 million deposit for a $20.01 million convertible loan by the Dec 31 2024 deadline.
" The company is exploring various options to resolve the matter. The company will seek alternative sources of funds for its business expansion and potential M& A activities," says Mooreast on Jan 3.
The convertible loan was to be from a fund by N PrimePartners Capital, managing the deal via a so-called variable capital companies structure. An interest rate of 3.7% per annum will apply and the loan will mature in 3 years.
According to Mooreast on Dec 30, it had on Dec 26 received an email from the lender saying its own investor has terminated its subscription to the VCC fund.
Back in June 18, Mooreast, located at 51 Shipyard Road, had announced plans to acquire an adjacent 98,919 sqm facility from Seatrium at 60 Shipyard Crescent to expand its production capacity for $13.5 million.
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antifragile
Senior |
31-Dec-2024 14:01
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Liquidation soon? Are they still able to pay
Seatrium $13.5 million?
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Joelton
Supreme |
31-Dec-2024 09:51
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Mooreast sees further delay to $20 million convertible loan agreement
Mooreast Holdings says the lender of a $20.01 million convertible loan agreement signed in August has again delayed the payment of a $1 million deposit.
The loan agreement was first announced back in June. After a definitive agreement on Aug 13, the lender was supposed to put a deposit of $1 million but this was delayed four times to Dec 31. The long-stop date for the loan agreement was also extended to Jan 31 2025.
The convertible loan was to be from a fund by N PrimePartners Capital, managing the deal via a so-called variable capital companies structure. An interest rate of 3.7% per annum will apply and the loan will mature in 3 years.
According to Mooreast, on Dec 26, the lender notified via email that its own investor has terminated its subscription to the VCC fund.
" As such, it is unlikely that the deposit will be received by the company on Dec 31.
" The company is seeking clarification from the lender on the email notification," says Mooreast.
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Joelton
Supreme |
19-Jun-2024 11:19
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Mooreast to acquire 1.1 million sq ft facility from Seatrium for S$13.5 million
A MOOREAST Holdings : 1V3 -4.5% unit intends to acquire a facility about 1.1 million sq ft in size from a subsidiary of Seatrium : 5E2 -9.58%, which will quadruple the anchor manufacturer&rsquo s production capacity, the group said on Tuesday (Jun 18).
The property, at 60 Shipyard Crescent, is near Mooreast&rsquo s current 323,000 sq ft yard at 51 Shipyard Road.
The S$13.5 million acquisition comes as Mooreast Asia seeks to increase its capacity to meet anticipated demand in the market for floating offshore renewable forms of energy.
On Tuesday, the group announced that it expects to complete the proposed acquisition and commence operations at the new facility by the end of 2024, subject to approval by JTC.
Mooreast was granted the option to purchase the property by Seatrium New Energy a deposit of 10 per cent has so far been paid. The group will fund the purchase through internal resources, it said.
Mooreast&rsquo s current yard at 51 Shipyard Road is one of the world&rsquo s largest drag anchor manufacturing sites, with in-house fabrication capabilities. Together, the two facilities will have a total land area of approximately 1.4 million sq ft. The combined value of right-of-use assets and equipment is estimated at approximately S$50 million, including machinery and equipment, the group said.
The acquisition will enable Mooreast to produce enough subsea foundations to support between 1.5 gigawatts (GW) and 2GW of floating offshore wind energy a year &ndash significantly more than its current output of 0.5GW.
This will cement the group&rsquo s position as one of only three ultra-high power anchor manufacturers globally, it said.
The new facility will be used to fabricate high-value sub-sea foundations and serve as a logistics hub that will handle holding, staging and assembly of equipment and blocks. This will streamline operations and enhance efficiency, enabling Mooreast to manage and execute larger-scale projects.
The new facility&rsquo s 865-m water frontage can accommodate specialist vessels for mobilisation and demobilisation of both onshore and offshore projects.
Mooreast plans to install solar panels on the facility&rsquo s rooftop to power its on-site operations, in line with its commitment to sustainability.
Sim Koon Lam, Mooreast&rsquo s founder and chief executive officer, said: &ldquo The acquisition of 60 Shipyard Crescent will expand our manufacturing capabilities significantly.&rdquo
He added that the group is already fielding enquiries from &ldquo several developers&rdquo of floating offshore renewable energy projects. Such projects seek to generate renewable energy from wind, wave, tidal or thermal sources.
&ldquo Mooreast is now ready to handle even bigger, commercial-scale wind projects,&rdquo Sim said.
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Joelton
Supreme |
14-Jun-2024 12:31
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Mooreast takes out $20 million convertible loan
Mooreast Holdings plans to take out a convertible loan of just over $20 million from a fund managed by N PrimePartners Capital.
Under terms of the loan, which is yet definitive, Mooreast will first receive $1 million. The remaining $19.01 million is to be disbursed by the investor within 30 days' notice issued by Mooreast.
An interest rate of 3.7% per annum will apply and the loan will mature in 3 years.
Mooreast, which specialises in providing anchoring systems for offshore floating platforms, says that repayment will be triggered if it makes an annual comprehensive profit after tax of $12 million before the maturity date.
When so, Mooreast can repay by issuing conversion shares. Rather unusually so for convertible loans, the conversion price is set at 29 cents, which is a premium of 180% over the volume-weighted average price of 10.36 cents as at May 31.
Mooreast explains that it is beneficial to raise financing via a convertible loan given its current financial position.
The company plans to use the loan for working capital to finance its expansion and growth across markets such as Southeast Asia, Europe and China.
Most recently on April 2, the company announced it has won a contract to supply its anchors to an offshore floating wind farm project in France.
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Joelton
Supreme |
14-Jun-2024 12:13
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Mooreast takes out $20 million convertible loan
Mooreast Holdings plans to take out a convertible loan of just over $20 million from a fund managed by N PrimePartners Capital.
Under terms of the loan, which is yet definitive, Mooreast will first receive $1 million. The remaining $19.01 million is to be disbursed by the investor within 30 days' notice issued by Mooreast.
An interest rate of 3.7% per annum will apply and the loan will mature in 3 years.
Mooreast, which specialises in providing anchoring systems for offshore floating platforms, says that repayment will be triggered if it makes an annual comprehensive profit after tax of $12 million before the maturity date.
When so, Mooreast can repay by issuing conversion shares. Rather unusually so for convertible loans, the conversion price is set at 29 cents, which is a premium of 180% over the volume-weighted average price of 10.36 cents as at May 31.
Mooreast explains that it is beneficial to raise financing via a convertible loan given its current financial position.
The company plans to use the loan for working capital to finance its expansion and growth across markets such as Southeast Asia, Europe and China.
Most recently on April 2, the company announced it has won a contract to supply its anchors to an offshore floating wind farm project in France.
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Joelton
Supreme |
02-May-2024 10:25
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EDBI sells Mooreast stake to spin-off August Global Partners
EDBI, a substantial shareholder of Mooreast Holdings 1V3 0.00% , sold its entire stake of 29.5 million shares or an 11.4% stake for $3.4 million to a fund managed by August Global Partners via a married deal on April 24. This works out to an average price of 11.5 cents per share sold.
AGP was spun out of EDBI last November with an initial asset under management of US$250 million ($340.3 million). Chu Swee Yeok, a longtime former CEO of EDBI, is the chair and founding partner of AGP. Another founding partner Basil Lui was the managing director of EDBI while Davian Sim, managing director for investments at AGP, was once EDBI&rsquo s senior principal of investments.
EDBI, the venture capital arm of the national economic promotion agency Singapore Economic Development Board (EDB), first invested in Mooreast via a convertible bond ahead of its November 2021 IPO, which was priced at 22 cents.
As described in its IPO prospectus, EBDI is investing a total of $10 million in Mooreast and the conversion to equity is to be done in two equal tranches. The first $5 million was converted to 29.5 million shares two days before the listing date, which worked out to 16.9 cents each. The second $5 million will be converted in 2026, five years after the first. Meantime, the bonds carry an interest of 9% a year.
Mooreast specialises in producing anchors, cables and other components for offshore structures such as windfarms. In recent years, its growth has been influenced by the wider growth of renewable energy.
On April 2, the company revealed its latest milestone: Securing an order to provide anchors for a 30MW floating offshore windfarm in southern France. This marks the inaugural venture of three planned floating wind energy projects in France. The initiative, named Eolmed, is a collaborative effort between Qair, a prominent European energy company, French industry leader TotalEnergies and floating technology supplier BW Ideol.
See also: Jardine Matheson steps up share buybacks Hongkong Land directors commit to buy shares
Installation contractor Bourbon Offshore will help transport and install Mooreast&rsquo s MA5S mooring drag anchors, which weigh up to 35 tonnes each and have a holding power of up to 1,210 tonnes. They will be delivered by October. The order, whose contract size is not disclosed, will contribute positively to the company&rsquo s FY2024 performance.
For the most recent FY2023 ended December 2023, Mooreast&rsquo s revenue barely budged but expenses, including fabrication, supply and administrative costs, grew. As a result, the company was $1.85 million in the red, compared to earnings of $1.37 million in FY2022.
Since then, the company says it has seen an uptick in urgent demand, especially in Southeast Asia. It is also ramping up its marketing efforts within the region.
Mooreast&rsquo s CEO Sim Koon Lam says the project win in France underscores the growing confidence that international players in the floating renewable industry have in the company: &ldquo The European floating wind energy sector is known for its rigorous standards and we are proud that Mooreast is able to achieve market acceptance in this region.&rdquo
According to Sim, the company is in active discussions with several project developers looking to tap Mooreast&rsquo s expertise and capacity for subsea foundation production. &ldquo We remain focused on offering differentiated value even as we see to capture more opportunities in the near future in this exciting sector,&rdquo he adds.
As described in the company&rsquo s AGM presentation, Mooreast is further enhancing its own yard capabilities to increase market share to further better value to potential customers.
Nonetheless, it warns that headwinds such as heightened labour and material costs, elevated interest rates and rising geopolitical uncertainty worldwide will weigh on its operating parameters.
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Joelton
Supreme |
23-Feb-2024 16:12
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Joelton
Supreme |
07-Aug-2023 10:28
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Mooreast gets second wind from renewable energy business
It aims to have its renewable energy division account for over 80% of revenue by 2030, up from 10% currently
FOR the last three decades, Mooreast Holdings largely served oil and gas companies, helping to anchor rigs and perform other deep-sea operations.
But as the climate crisis deepens and demand for renewable energy soars, the mooring solutions company has found a surprisingly natural fit on the opposite end.
Instead of supporting oil rigs, it is anchoring floating wind farms instead, using similar technology.
Not only does this allow the company to capture a new and fast-growing clientele, it also lets it quickly scale up its offering due to the very nature of wind-farm operations.
While Mooreast&rsquo s regular anchors weigh 15 to 20 tonnes each, it is now looking to develop anchors that are 40 to 50 tonnes.
&ldquo Everything is supersized,&rdquo said Jaymes Sim, Mooreast&rsquo s commercial head. &ldquo The concept of designing is the same &ndash the methodologies, the work that&rsquo s required is the same. But the challenges are slightly different because you have an extremely heavy and big turbine at the top that is constantly having wind blowing at it and trying to catch as much wind as possible, and you need that stability at the bottom.&rdquo
A turbine, he added, weighs about 1,000 tonnes. Consider, too, the fact that wind farms consist of multiple turbines and floaters per farm compared to an oil rig.
Depending on the type of floater used, the motion data or environment, three to six anchors may be needed to anchor a floater.
To build a 1 GW wind farm, up to 67 units of 15 MW wind turbines are needed, and these would be mounted on the same number of floaters. Such a set-up translates to the use of at least 200 anchors.
In comparison, an oil rig requiring &ldquo complicated mooring solutions&rdquo may use about 12 to 15 anchors.
Winds of change
It&rsquo s why the company expects its renewable energy division to account for 80 per cent to 90 per cent of its revenue by the end of this decade, up from slightly over 10 per cent currently, based on its financial results for the six months ended Dec 31, 2022. The bulk of Mooreast&rsquo s revenue comes from its mooring and shipyard business.
Sim Koon Lam, founder and chief executive of Mooreast, considers the pivot to renewables a &ldquo migration&rdquo of the business.
The experience, skills and know-how that the company has built up from its oil and gas business over the last three decades is being transferred to the renewable energy sector.
&ldquo We basically transformed ourselves into that, so it&rsquo s not a loss of knowledge,&rdquo said Sim, who is also Jaymes&rsquo uncle. &ldquo What we do in oil and gas, and what we&rsquo re doing with renewables technology-wise, there are not (many) changes. But the mindset has to change.&rdquo
Jaymes Sim added that the perception held by people within and outside the industry is different.
&ldquo For example, you might say that we are working our way towards renewable energy, but actually the developers are telling us, &lsquo please come over, we don&rsquo t have enough supply&rsquo ,&rdquo he said.
Japan has been a key market for Mooreast since 2013, with the country eager to source for clean energy solutions after a severe earthquake led to a nuclear disaster in Fukushima in 2011. One of the company&rsquo s recent projects involves delivering 15 mid-water arch buoys for Japan&rsquo s first commercial floating wind farm in Nagasaki, built by a consortium led by Toda Corporation.
Mooreast&rsquo s other important markets in Asia include South Korea and Taiwan.
More recently, Europe and the United Kingdom have emerged as a lucrative market &ndash demand for renewables there has spiked since the Russia-Ukraine war last year sparked an energy crisis.
In February, Mooreast inked a collaboration agreement with ETZ, a non-profit company tasked with accelerating energy transition across north-east Scotland. The two companies will explore establishing a manufacturing facility in Aberdeen for the production of subsea foundations, as well as the consolidation and assembly of mooring components for floating wind farms.
These investments come at a time of sluggish growth in Europe, but Sim Koon Lam is unfazed as he eyes more opportunities in France, Germany and the Netherlands.
&ldquo They will definitely be more cautious on investments, but (focusing on) renewables is a whole-of-EU decision. They are pushing forward because they already face a challenge &ndash either they have to pay a higher cost for gas or oil, or they have to look for another alternative,&rdquo he said, adding that he believes the European Union&rsquo s (EU) renewable push could in fact help its economy recover more quickly.
Thriving against the tide
Sim Koon Lam is no stranger to taking seemingly counterintuitive actions in the face of macroeconomic challenges over the years. One example is the July 2021 acquisition of the company&rsquo s current site, which spans three hectares, at 51 Shipyard Road in Tuas.
&ldquo It was basically the market downturn&rdquo when the company took over the site, he said, adding that he found the opportunity to take up a facility &ldquo reasonable&rdquo , &ldquo but a lot of people are saying I bought cheap&rdquo .
He added that &ldquo another crazy move&rdquo was to list the company in 2021, even as naysayers questioned why he made these decisions while the market was down.
&ldquo First of all, I think when the market is down, you can pick up a lot of cheap and good things,&rdquo he said.
He also saw the slowdown as an opportune time to &ldquo get ourselves prepared, get ourselves ready&rdquo to capture new opportunities when they came. This line of thinking, he said, was sparked by oil price plunges in 2013 and 2014.
Still, these moves may have caused the company to sink in the red for a while, Sim Koon Lam said. Mooreast incurred a net loss of S$2.26 million in FY2021. Excluding one-off expenses for its initial public offering (IPO), its net loss was S$1 million.
For FY2022, Mooreast turned a net profit of S$1.44 million, a result Sim Koon Lam attributed to having &ldquo worked hard&rdquo .
But even as the company pulls out all the stops to ride the winds of change, there are limitations and challenges beyond its control, he said.
&ldquo Yes, everybody wants to move forward and move faster, whether it&rsquo s in Asia or in Europe, but there are a lot of things that are still not ready,&rdquo he said. For example, supply chain challenges have not been completely resolved, and skills &ldquo lost&rdquo during the Covid-19 pandemic have worsened the manpower crunch.
There were more people laid off in the downturn, and the pandemic also led some to re-evaluate their priorities &ndash for instance, preferring to work for the gig economy than in the shipyard, he reckoned.
With the increasing attention on renewable energy, though, both Sim Koon Lam and Jaymes Sim are hopeful this could draw more young people to the industry &ndash especially those who want to do more to save the environment and reduce the impact of global warming.
&ldquo Unlike in oil and gas, where you&rsquo re just working for maybe your pay... I think globally, (in) the renewable energy sector, especially in Europe, (people) see it as a duty, that this is&rdquo giving back to society, said Sim Koon Lam.
For the rest of the year, he considers the outlook to be &ldquo challenging&rdquo , given that supply chain bottlenecks have not eased even with the fading of the pandemic, due to the gloomy economy as well as other uncertainties.
That said, with the Asian and Australian markets picking up, Sim Koon Lam said the company is also concerned that its Singapore facility, where all its products are manufactured, may not have sufficient capacity.
&ldquo At the moment, we are sourcing and looking at alternative solutions outside of Singapore,&rdquo he said.
Meanwhile, the company is also on the lookout for suitable targets to acquire, given it had allocated S$1 million from its IPO proceeds to mergers and acquisitions. However, Sim Koon Lam said the budget is potentially higher than that.
He said: &ldquo We haven&rsquo t stopped, we&rsquo re still looking&hellip something that is in line with the direction we want to go, like renewables.&rdquo
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Everyday
Elite |
12-Apr-2023 12:16
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FY2022 Financial Performance Despite movement restrictions and supply chain disruptions caused by the pandemic, Mooreast recorded improved performance in all business segments as revenue soared 96% to $27.8 million in FY2022 from $14.2 million a year ago. https://links.sgx.com/1.0.0/corporate-announcements/O54KI36OK0RTNQ4W/b384e0d913033256187a189b21e496fb34a71e70a4c87c8a1fd22c8484320a94 |
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Everyday
Elite |
24-Feb-2023 08:01
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Mooreast Posts FY2022 Net Profit of S$1.4 Million, Compared to Net Loss (Excluding One-Off IPO Expenses) of $1.0 Million, on 96% Rise in Revenue, Underscoring Recovery From Pandemic-Related Disruptions https://links.sgx.com/FileOpen/230223.MEH%20-%20FY2022%20Press%20Release.ashx?App=Announcement& FileID=747620 |
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Joelton
Supreme |
21-Feb-2023 09:43
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Mooreast signs agreement to build manufacturing facility in Scotland for the production of subsea foundations
Catalist-listed Mooreast Holdings 1V3 -2.23% has signed a collaboration agreement with ETZ to explore establishing a manufacturing facility in Aberdeen, Scotland, to produce subsea foundations. The facility is also for the consolidation and assembly of mooring components for the floating offshore renewable energy sector.
ETZ is a not-for-profit organisation that seeks to protect and create jobs in Northeast Scotland.
In accordance with the agreement which was signed in Singapore with ETZ&rsquo s offshore renewables director Andy Rodden and witnessed by Scotland&rsquo s minister for business, trade, tourism and enterprise, Ivan McKee, Mooreast will work with ETZ to establish a hub aimed at safeguarding the Scottish renewable industry and promoting employment opportunities.
The facility is estimated to have over twice the floor space and output of the group&rsquo s Singapore facility at 51 Shipyard Road. It will also support the group&rsquo s efforts to target an increasing number of offshore wind projects emerging in Europe.
Some of the high-profile projects include the ScotWind auction, The Celtic Sea Cluster and the Innovation and Targeted Oil and Gas (INTOG) project, which are expected to deliver over 20GW, 5 GW and 4.5GW of floating wind energy, respectively.
Based on the agreement, both Mooreast and ETZ will work closely on developing a preferred site plan to meet the former&rsquo s requirements and one that is compatible with local planning regulations, development requirements and site limitations.
The agreement will also see both parties delivering a jobs and skills plan to secure a workforce to support the facility&rsquo s operations. In addition, both parties will work together to facilitate introductions to key local supply chain companies required to support the start-up and future operation of the preferred site.
&ldquo We are honoured to have Ivan McKee grace this event. Upon completion, the facility will serve as a cornerstone of Mooreast&rsquo s expansion into Europe, and will enable us to produce high-quality products and services for our renewable energy customers in the region,&rdquo says Sim Koon Lam, CEO of Mooreast.
&ldquo It is great to witness the signing of this collaboration agreement. As the world&rsquo s largest floating offshore wind leasing round, ScotWind puts us at the forefront of the global development of offshore wind and represents a massive step forward in our transition to net zero,&rdquo says McKee.
&ldquo As set out in our national strategy for economic transformation and our inward investment plan, it is critically important that we work closely with inward investors by offering our unique &lsquo Team Scotland&rsquo approach to support their growth and expansion into Scotland, enabling us to deliver inclusive economic prosperity,&rdquo he adds.
&ldquo Mooreast&rsquo s intention to explore establishing significant operations in Aberdeen is warmly welcomed and a testament to the critical mass this region has in the skills and expertise required to support such an exciting development,&rdquo says Rodden.
&ldquo Owing to a world-class oil and gas sector, our region is home to 75% of the world&rsquo s subsea engineering capability and the highest concentration of energy supply chain companies anywhere in the UK. ETZ Ltd&rsquo s role is to harness these competitive strengths and accelerate diversification in order to retain that global status as a sustainable and long-term-industry cluster for new and green energies,&rdquo he adds.
&ldquo We are at the very early stages of this particular process but this potential development reflects the type of investment that will help us realise this ambition. I&rsquo m therefore delighted that ETZ Ltd, which has a key role as a catalyst to attract investment to the region, will be working closely with Mooreast on a range of areas as we seek to secure a positive outcome,&rdquo he continues.
As part of its strategy to capture opportunities in the offshore wind projects emerging in Europe, the group incorporated Mooreast UK Co Limited in July 2022. It has appointed Barry Silver as its managing director of Mooreast UK Co. Silver comes with over two decades of business, technical and operational experience in offshore energy markets, and will be responsible for establishing and managing the group&rsquo s facility, as well as business development to support Mooreast&rsquo s international growth.
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TraderBen
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20-Feb-2023 09:06
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market cap only less than 50m.. and govt injecting 150m.. lets see.. exciting stuff here.. | ||
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Everyday
Elite |
20-Feb-2023 08:38
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SGX-Listed Mooreast Signs Agreement with ETZ Ltd in the Presence of Scottish Minister Mr Ivan McKee to Explore Establishing Manufacturing Facility in Aberdeen to Support Floating Offshore Wind Energy Projects https://links.sgx.com/1.0.0/corporate-announcements/GNPDQQIYX1U8NKY1/f13974cc493c61b29520b6e96d989819418884c15781d7a7a4a57757e2f724d1 |
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