In its latest FY2024 ended Dec 31, 2024, the group saw losses widen to $2.2 million from a loss of $1.9 million a year ago. This comes on the back of revenue also declining 13% y-o-y to $25.1 million.
Mooreast, while not having any formal dividend policy, has yet to dish out dividends to shareholders. Since listing, Mooreast shares have declined by about 53% to trade at 11 cents on June 4.
FY2024 was the group’s weakest set of results since listing. The poor showing was attributed to a slowdown in market activity, especially in renewables, where project delays and permitting issues disrupted delivery timelines.
After the lacklustre financial year, Mooreast early this year faced further issues as it lost a key investor and the group’s CFO resigned just four months into the role, citing “personal reasons”.
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Amid the rubble, Mooreast has appointed a new chief executive tasked with bringing the company back on course. At the helm since Jan 1 is Eirik Ellingsen, a seasoned Norwegian executive with nearly 40 years of experience in offshore energy.
“I’ve known Mooreast since 2008 or 2009,” Ellingsen tells The Edge Singapore. “We were neighbours in Loyang and we kept in touch over the years. When the opportunity came up, I knew it was time.”
Since stepping in, Ellingsen has wasted no time rebuilding the group’s internal structure, sharpening its focus on target markets and preparing Mooreast to ride the next wave of growth, driven largely by floating offshore wind.
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“We’ve implemented quite a few new routines that improve efficiency,” he says. “We’ve restructured reporting lines and made responsibilities clearer. It’s about getting the organisation aligned so we can move as one.”
A troubled year
Aside from a lacklustre FY2024, the company was dealt a heavy blow when a planned $20.01 million investment collapsed early this year. The funds were meant to support the group’s growth ambitions, including the acquisition of a new shipyard in Singapore. Despite having signed a term sheet and undergoing initial due diligence, the investor withdrew unexpectedly.
“From the company’s perspective, we did the best due diligence we could,” says Ellingsen. But after the term sheet, Ellingsen shared that the China-based investor decided on a whim not to pay the $1 million deposit and eventually the entire deal was cancelled. “It was beyond our control,” he said.
Ellingsen insists that the $20 million was not essential for immediate survival. “It was intended for expansion, not operational cash flow,” he clarifies. “We’re still interested in investors, but we’re being more cautious now. We’re insisting on deposits upfront before entering serious negotiations.”
Internally, the group began reviewing its budgeting and pipeline planning early last year. “We started in January with a goal to turn the company around,” he says. “We’ve looked closely at our costs, our manpower and our pipeline. There are good projects in the pipeline. We just need to execute.”
New waves
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One of Mooreast’s most decisive moves so far has been the acquisition of a new shipyard facility from Seatrium last June. The $13.5 million deal gives Mooreast access to 100,000 sqm of land at 60 Shipyard Crescent, four times the size of its existing facility in Pioneer.
“We are now able to scale up production significantly and position ourselves for much larger contracts,” says Ellinger. This could be a game-changer for the group.
While the group did not share if the $20 million investment was supposed to fund this acquisition, Ellingsen shared that the group will be funding this acquisition through internal resources. The acquisition is not yet completed.
Mooreast is one of only three companies globally that manufacture mooring anchors for floating offshore wind projects. Uniquely, it does so entirely in-house and indoors — a capability that Ellingsen believes will become increasingly critical as the offshore wind industry scales.
“Over the next five years, we expect at least 72 offshore projects in the pipeline across the industry in Asia and Europe. That would come up to about 20 gigawatt (GW) of floating wind,” says Ellingsen, explaining that 1GW requires about 400 anchors.
If the acquisition of the Seatrium shipyard is successful, the group’s production capacity should increase by at least four times, allowing it to bid for larger projects that are coming up.
“We need the capacity to say yes to more such projects,” says Ellingsen, hoping to capture a significant amount of the 72 upcoming projects. “Our goal is to be ready with manufacturing capacity when final investment decisions are made, expected from 2H2026.”
The group is targeting several high-potential markets. In Taiwan, Mooreast is positioning itself for the government’s next offshore wind auction, which is expected to include floating wind. “There are eight zones being prepared and eight developers ready to bid. Taiwan has come a long way in offshore wind,” Ellingsen says, as the group has recently expanded its presence in Taiwan.
Meanwhile, in Malaysia, Mooreast has set up a subsidiary and secured a Petronas licence to participate in the offshore drilling projects. “Malaysia is a unique market. You can’t just walk in as a foreign company and start bidding. But now that we have the necessary certification, we expect to see opportunities open up in the next 12 months,” he adds.
The company is also planning to expand in Europe. It already has a presence in the UK and is studying opportunities in France, Italy and Norway.
Though it does not plan to enter the US market, Ellingsen believes Europe will remain a stronghold for floating wind, particularly as supply chain capacity continues to lag behind demand.
“In the next five years, more than 20GW of floating wind is coming online. That’s billions of dollars in contracts. If we play our cards right, Mooreast could be a key supplier in this transition,” he says.
High-stake pivot
Even as Mooreast doubles down on renewables, its traditional oil and gas business continues to provide near-term cash flow. The company has ongoing projects in Thailand and Malaysia and the recent uptick in drilling activity across Europe could also translate to higher demand for mooring systems.
Globally, the energy transition is happening in stages. In Asia, slow permit processes and unclear regulatory frameworks remain key hurdles. “In Korea, for example, you need around 20 different licences before starting work on a single floating wind project,” says Ellingsen.
Political uncertainty has also played a role in delaying project execution. In several countries, national elections have postponed the launch of clean energy programmes. “But we’re slowly seeing progress. The momentum is there,” he says, adding that these delays eventually affected the group’s FY2024 results.
To hedge against delays, Mooreast has adopted a two-pronged approach — supporting both short-cycle oil and gas projects and long-term renewables. “Some of our revenue is still project-based, but we do have rental equipment that provides recurring income.”
Still, funding expansion remains a challenge. While the Seatrium acquisition will be funded using internal cash reserves, the group may consider increasing its gearing and is in talks with a few alternative investors, but has yet to share more about that.
“We want to have the manufacturing capacity in Singapore,” he says. “But if we can’t get what we need here, we’re also looking at Malaysia. The important thing is to stay in control of our production and be ready when the orders come.”
In the meantime, the group is actively bidding for several floating offshore wind contracts, with the aim of receiving main purchase orders by end-2025. “That gives us time to build the infrastructure we need. But we can’t afford to wait until the last minute,” Ellingsen adds.
He is also aware of external risks, including geopolitical instability and macroeconomic headwinds. However, he remains confident in the company’s long-term prospects. “We’ve already delivered systems for 86 megawatt of floating wind — that’s 30% of what’s been deployed globally so far. We’re in the game.”
Mooreast’s transformation is far from complete. But under Ellingsen’s leadership, the group is showing signs of renewed focus, ambition and discipline. The real test will come over the next two years as the floating wind sector moves from pilot projects to full-scale commercial deployments.
For now, Ellingsen is keeping his eye on the horizon. “The long-term outlook is bright,” he says. “There will be more renewable projects than we can handle. Everyone will be sold out and we want to make sure we never have to say no to a purchase order because we weren’t prepared.”
If Mooreast succeeds in executing its plan, the company could find itself not just back in the black, but at the centre of one of the most critical industrial transitions of the century.
