Arne Blystad-owned OHT has revealed its funding plans for fleet expansion in the growing offshore wind vessel sector.

The company has one foundation installation ship and one wind turbine installation vessel (WTIV) on order at China Merchants Heavy Industry in China, with three options attached in each case.

OHT raised $60m as it listed on Oslo's Merkur Market in September and is now targeting a main board listing in the first quarter of 2021.

The shipowner, which has five heavylift vessels operational, also wants to make a full exit from oil and gas transport contracts by 2026 as it switches to renewables.

Newbuilding fully funded

Speaking on the company's first conference call with analysts since listing its shares, chief financial officer Tom Erik Jebsen said the $60m pot means the new foundation ship is fully funded. The 48,000-dwt Alfa Lift is due for delivery next year.

But the company is still weighing other financing options for the vessel, which could include a bank facility, "possibly with a bond on top", the CFO added.

For the firm $230m WTIV contract, Vind 1, 40% will be financed with equity.

This means $92m, of which 20% has already been raised. Another share sale will likely be launched within the next 12 months, Jebsen added.

"We have indicated that we would be interested in doing more vessels. If this is Alfa Lift 2 or Vind 2, then we need more contracts for the first vessels before we do that," he said.

OHT is backed by Norwegian investor Arne Blystad. Photo: Fredrik Ekren

"Should they materialise, then we would have to visit the equity market again."

The company has this year won two big contracts to install foundations for SSE's Dogger Bank A and B wind farms off the UK.

Battle for Dogger Bank deal

OHT Chief executive Torgeir Ramstad was asked whether the company had an option for the Dogger C contract.

He said: "No, nobody has that. SSE have said they would mature new technologies for C. They want to give themselves more time."

Ramstad added: "We are still awaiting clarity as to exactly what that entails. We have some signals and indications; it could be larger turbines, or slightly different foundation types."

The company has tendered for Dogger Bank C, Ramstad confirmed.

OHT has bids in on nearly $2bn of offshore wind work, with some jobs needing multiple vessels.

These are mainly in Europe, but Ramstad said there are a "handful of targets" in the US market.

High barriers

The CEO added there are high barriers to entering the sector.

But he said: "There are opportunities in offshore wind for oil and gas maritime companies.

"The main barrier now is establishing a capable contracting organisation and the capability to execute projects in a transparent and predictable way."

Ramstad said clients need to be convinced on many different levels, including health and safety, operations and design.

OHT's net profit in the third quarter was $3.6m, up from a loss of $1.7m a year ago.