Miclyn Express Offshore Limited (“MIO”) announces the formation of a new business, Express Offshore Solutions (“EOS”) that will service the project and pipe transportation segment in Asia, Middle East and Australia. This segment presents an attractive extension of MIO’s existing business activities, leveraging on its geographic presence and experience in tug and barge operations.
EOS will bid on pipe transportation projects which are typically tendered by offshore oil and gas companies and other target customers of MIO’s vessel services operations.
MIO will initially hold an 80% stake in EOS, with the balance of equity to be injected by an external investor company. A dedicated management team with a proven track record has been recruited and will lead the company. The formation of EOS requires a negligible capital commitment from MIO, given that the assets required to complete the projects will be chartered in from either MIO or third parties if necessary.
By entering into pipe transportation services, MIO will diversify its business mix and enhance its revenue base. MIO’s current asset base is complementary to the asset requirements of EOS which will provide utilisation upside for MIO’s Tug and Barge fleet in particular, but also potentially for its OSV and Crew/Utility Vessel fleet.
“This is an exciting new venture for MIO” said CEO Diederik De Boer. “It provides us with a new earnings stream in a segment that is complementary to our core business, being offshore vessel services. We have recruited a strong and experienced management team with extensive project execution and business development experience to get the business up and running relatively quickly. We look forward to working with our new partners to make EOS a dominant player in pipe transportation.”
[mappress] Source:Miclyn Express Offshore , June 21, 2011;