Norwegian energy services player Odfjell Drilling is considering a spinoff of its well services and energy businesses into a newly established company, Odfjell Technology, and listing it on the Oslo Stock Exchange.
The new company would focus on innovation and development of new services, technologies and products required in the energy transition, offering reduced emissions and seeking to further expand into green ventures, such as the current investment in Odfjell Oceanwind.
In connection with the spinoff, Odfjell Technology intends to issue four-year, senior secured bonds through a private placement. The net proceeds will, together with a new $25 m super senior revolving credit, be used to carry out the internal reorganisation and to repay the existing $150m loan related to the well services and energy segments. The shares in Odfjell Technology are expected to be distributed to the shareholders in the company and admitted for trading in Q1 2022.
After the spinoff, Odfjell Drilling will continue with four fully owned harsh environment semisubmersible drilling units and three under marketing and management services.
Simen Lieungh, CEO of Odfjell Drilling, commented: “Splitting the MODU and services segments into two groups, allows us greater flexibility to proactively respond to the changes and opportunities facing the industry. We strongly believe that the timing for this is good as the company is financially healthy and prepared to stand alone as two separate entities. Increased management focus within Odfjell Technology will further allow those segments to think beyond their existing core services and evolve for the future.”
Before executing the spinoff, an internal reorganisation is planned, with well services and energy companies becoming subsidiaries of Odfjell Technology. Simen Lieungh is expected to lead the new company as CEO, and the initial board of directors is expected to consist of Helene Odfjell, Alasdair Shiach, Susanne Munch Thore, and one additional director to be announced at a later stage.