Seaway7 did not perform as expected last year due to problems with the construction of its new Alfa Lift installation vessel, according to chief executive Stuart Fitzgerald.
The company made a net operating loss of $50m for the 12 months, compared to a $63m deficit in 2021, including spilling $5m of red ink in the final quarter of the year.
Fitzgerald said the design and fabrication of the mission equipment on the vessel, including for upending monopiles, led to an overrun on the construction schedule and budget.
This had a knock-on impact on a contract to install monopiles at the Dogger Bank A&B projects, which “meant a provision was taken in 2022”.
“This development contributed, among other factors, to the Group being unable to realise its initial objective to increase the free float of Seaway7, and necessitated recapitalising Seaway7 through a combination of debt and equity rights issue,” he added.
Structural welding repair of the Liebherr crane A-frame (pictured) was on the vessel, damaged during construction, was completed in late 2022, he added.
Commissioning of the crane is ongoing and the vessel is anticipated to leave the yard before mid-year 2023.
“The mission equipment for the upending and lowering of monopiles is still the critical path to the vessel’s readiness for monopile operations, and main elements of this equipment commenced transport from China at the end of 2022.
“The mission equipment will be completed and commissioned in Europe under a revised execution plan activated during Q3 2022 aimed at improving the robustness of the overall schedule and cost of the build project.”
The company cited a number of positive developments, including nearing completion of its Seagreen foundations scope, securing new array cable installation deals in Taiwan and Germany, and completion of contracts in the UK and Asia.
Subsea7 meanwhile said it is planning to acquire the remaining shares in the offshore wind business after disclosing an agreed to buy a 21.5% stake held by Songa Capital, West Coast invest and Lotus Marine.
The company will hold a 94% shareholding once completed, and plans to make offers for the remaining shares.