Launched at Subsea Expo 2013, subsea contractor Harkand says it has experienced exceptional growth in the last 12 months as it seeks to become a leading brand in subsea inspection, repair, maintenance (IRM) and light construction for the oil and gas industry worldwide.
Formed through the merger of Iremis, Integrated Subsea Services (ISS), and Andrews Survey, with the specific intention of capturing a major share of this rapidly-growing IRM market; and following the acquisition of Veolia Marine Services in August, the group now employs close to 1,000 people worldwide.
And group CEO John Reed expects this figure to grow by a further 150-plus this year as yet more work is secured across the business.
The ROV support vessel, Harkand Harmony started its first job offshore of Vietnam in November last year and, just weeks ago, the company ordered a new-build dive support vessel.
“The company really made a leap forward in 2013,” Reed told Energy.
“Performance of the vessels and people was extremely good. The company not only grew in its target markets but also added the US Gulf of Mexico and an asset (ship) in Asia-Pacific as well.”
Reed said the decision to set up a central corporate office also marked a step forward, though he stressed it would remain small (around 15 staff) and that emphasis would remain on the regions.
“This was about creating a proper core to the business . . . a focal point for direction and strategy and overall control. The regions were operating more or less independently and doing very well. But they were still operating as regions and not necessarily as a whole Harkand,” said Reed.
“To structure the company better from a cultural and financial perspective to enable growth, the board thought it necessary to form this corporate centre.”
Reed said Harkand easily beat its financial targets for 2013 but said this year poses challenges.
“We are still a thin company. We don’t have the bulk (rump) of management and systems in place that give the comfort that you would have if you were a long established company.
“We still need to build out our structure, including where we have our newest operations.
“And to reach our $1billion (annual turnover) in five years goal, we can’t do it with just the assets that we currently have. So part of our growth plan will include taking on additional assets. We’ve just ordered a new-build DSV, but we will be looking for opportunities to take on additional charters, or acquire other existing assets.
“If we can manage to do a bit of that during 2014 and we actually get our hands on more assets, you’re probably looking at 150-200 people all-in being added.”
Reed would like to boost the fleet from eight to 11 ships as they are considered to be critical vehicles for growth.
As for the current state of the market, Reed said it was always tough but that, by sticking with IRM work, Harkand is less vulnerable to big projects market swings suffered by first division subsea players.
However, he wants the company to secure one or more frame agreements during the current year as this would lessen dependence on the spot market.
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