15 May 2024 – ABL Group has entered into an agreement to acquire 100 percent of the shares of specialist energy consultancy Ross Offshore from Moreld Group.
“We welcome the Ross Offshore team to ABL Group and look forward to the amalgamation of the business within our AGR brand. This is the latest expansion of our technical offering in wells and reservoir operations, bringing together an even deeper pool of expertise, that enables us to support more clients worldwide across their oil operations. Moreover, Ross Offshore’s competency in marine operations consulting further enhances the Group’s market position as consultant of choice to support energy and marine operations” says Reuben Segal, CEO of ABL Group.
Following completion of the transaction, Ross Offshore will merge with ABL Group company AGR, expanding and further strengthening the group’s service offering in wells, reservoir operations and other consultancy services.
“As oil and gas companies have continued to grow over the years, we too need to expand our capacity and competence to ensure that we can provide the best possible support to our clients through the challenges they face. AGR first joined forces with First Geo, then Add Energy, and now Ross Offshore, showing our commitment to growing with our customers to drive safety and efficiency in their oil and gas operations in both current and new markets worldwide,” says Svein Sollund, CEO of AGR.
Strategic Rationale
- A combination of like-minded companies with overlapping cultures and values and highly complementary service portfolios.
- Consolidates recognised expertise of AGR and Ross Offshore in wells and reservoir consulting and engineering, creating a stronger platform for future expansion.
- Creates opportunity for both AGR and Ross Offshore together to accelerate the globalisation of their service portfolio, leveraging the wider ABL Group’s global footprint and expansive client network.
- Chance to enhance both AGR and Ross Offshore’s growing resource consultancy businesses, bringing value to the oil and gas industry, and accelerating ongoing expansion to support renewable energy sectors.
- Enhances ABL Group’s growing service offering to support energy and marine operations, with Ross Offshore’s service portfolio in marine operations consulting.
“As part of ABL Group, Ross Offshore will have the opportunity to expand both its core technical competency in wells and reservoirs, its growing offering in marine operations consulting, and its vision to grow in CCS and geothermal technologies. This merger also creates an even stronger platform off which both Ross Offshore and AGR together can globalise their expertise and expand beyond their established markets,” continues Segal, CEO of ABL Group.
About Ross Offshore
Ross Offshore was established in 1997 as a consulting company in Sandefjord, Norway. Since then, the company has grown to be a complete provider of drilling and well management services on behalf of operators; subsurface services including offerings within reservoir and field development, exploration, reserve audits and due diligence, and carbon capture and storage; and consultancy and resourcing services.
Ross Offshore also provides services for marine and offshore operations, spanning marine mobilisation, HSEQ consulting and contracts and logistics. This service line complements ABL Group’s expanding offering in supporting marine and energy operations. Ross Offshore holds frame agreements for well management, specialized services and consultancy for several clients – both small and large – on the Norwegian continental shelf.
Headquartered in Stavanger, Norway, Ross Offshore currently employs 152 people, of which 48 permanent staff and 104 associates / independent consultants. The company also has offices in Sandefjord and Bergen, Norway. In 2023, Ross Offshore delivered gross revenue of approximately NOK 848 million (equivalent to USD 80.3 million at 2023 average FX rate). Approximately NOK 378 million (USD 35.6 million) of last year’s gross revenue derived from recharged vessel charter costs, giving net revenue from core services of approximately NOK 470 million (USD 45.4 million). Ross Offshore’s 2023 EBIT of NOK 31 million (USD 2.9 million) represents approximately 6.6% EBIT margin on net revenue basis.
“This partnership is a strategic synergy of two completely complementary companies, unlocking the opportunity to further strengthen our mutual position in oil and gas markets, so we can help bring best practice to more clients in more countries globally. It also represents a chance for both companies to grow our activity in the energy transition space. Lastly, with AGR and part of ABL Group, we will be able to nurture and grow the Ross approach for technical excellence beyond Norway and into new industry sectors,” says Jørgen Jørgensen, CEO of Ross Offshore.
“Ross Offshore has demonstrated strong growth under the ownership of the Moreld Group, and we are confident the transition to the ABL Group will continue this successful journey. The strategic decision of this agreement reflects our commitment to optimizing the portfolio and focusing our resources where they can have the greatest impact, enabling Moreld to pursue opportunities aligned with our long-term strategy,” says Geir Austigard, CEO of Moreld Group.
Ross Offshore also holds a minority 25% shareholding in Danish well management and subsurface consultancy Ross Energy.
Transaction Details
ABL Group acquires 100 percent of the shares in Ross Offshore from Moreld Group AS, a company backed by McIntyre Partners and Velocity Partners. The transaction values Ross Offshore at NOK 100 million (equivalent to USD 9.2 million at current FX rates) on a cash and debt-free basis, based on locked box accounts as of 31 December 2023. The transaction will be settled in cash on completion, utilising ABL Group’s existing cash holdings and undrawn credit facilities.
The transaction, which is subject to approval by the Norwegian competition authority, is expected to be completed in late Q2 or in early Q3 this year.
