Transforming an offshore services into a marine services company

The Situation

Our client was an offshore oil and gas fabrication and maintenance company that had a strategic advantage in its seaside land and proximity to offshore oil fields. Traditionally, they only had a few select clients, and exposure to oil price movements was a key earnings risk. With fewer and fewer fabrication contracts and severe cash flow issues affecting their returns to shareholders, our client knew that they had to transform the business in order to continue growth. Advisian was enlisted to develop their new business growth strategy.

Approach

We commenced the first phase of strategy development through identifying, evaluating, and prioritising opportunities for growth through a significant market assessment, thus determining feasible business options. Our team interviewed market participants and utilised multiple industry data points to determine each opportunity’s attractiveness to our client and from a market perspective.

The prioritised opportunities pointed to the transformation of the business and land to a marine services company. The transformation strategy provided a logical plan to move away from their current core business, increased their business diversification, and identified some new capabilities required to capture an emerging market. For the second phase we developed a new, future-state business model, a partnering approach, and bankable financial plan to attract investment.

Results

Advisian developed a strategy and business plan to commence business transformation for growth, increase market size, and improve cash flow resiliency. It enabled the client to lock-in key business partners, obtain new customer contracts, establish external financing, and commence early engineering for the re-purposing of their core asset.

To enable clearer decision making,  we included a valuation of their business and land, should it be sold as-is.