Dear readers of Solships
What a crazy year this has been . In Solships last year , I had an optimistic leader where I highlighted that the coming year looked promising and that we could see the beginning of a recovery in the market for offshore vessels . Then , suddenly , the Covid-19 virus came and sent the world into lockdown . The oil companies revised their spending budgets and the expected market recovery was long gone . So , instead of a busier market , we got a significantly slower market were important contracts got cancelled or postponed . On top of that , with borders closed and airline traffic nearly stopped , it became , and still is , a huge operational challenge to keep our vessels going .
I would like to take this opportunity to thank all colleagues in Solstad , onshore and offshore , for your efforts and patience during this extraordinary time . There have been long shifts onboard , quarantines before and after . Logistical challenges . Covid-19-testing . Floating schedules , uncertainties , very often organized while working from home offices . The attitude and fighting spirit shown makes me proud of heading Solstad !
While fighting the Covid-19 and the effects of it , there are two other major topics that will influence Solstad going forward .
The energy transition is moving fast forward and we are an important part of it . More energy will be produced from renewable sources such as wind and sun . Many of our clients , and others , are investing heavily in offshore-wind projects and this create activity on top of the more traditional oil & gas activities . This is an important long-term trend , driven by the expectations of , and desire to , reduce emissions . It is an enormous opportunity and Solstad is very active within the offshore-wind segment . Already , we have 10-15 % of our overall revenues from Offshore-wind and we expect this to grow significantly going forward .
It is our responsibility to continue reducing our emissions from existing operations . Different types of fuel , engine technology , batteries and shore power are already happening . There will be more , and we will take an active part in development of new technologies that can bring emissions further down towards zero . Because that is our bold ambition . 40 % reduction of emissions , compared to 2008 , within 2030 . Zero emissions within 2050 . Operational excellence is a very important aspect of this , and the well-known Solstad Green Operations program gives all of us a tool to contribute with operational measures , every day .
The other is , as you all know , that after more than two years of negotiations , we reached an agreement with our creditors to restructure the company . This is very important , as we now have a significant stronger balance sheet and liquidity position . This make us able to further develop the company in a controlled manner while waiting for the market to return to a more normalized level .
We will sell off the part of our fleet that we believe there will be limited demand for when the market returns . We will be able to transfer competence and vessels from oil & gas to renewable energy activities where this is relevant and we will continue to develop our global activities further as a reliable partner for all our stakeholders .
The industrial Owners of Solstad are the same as before . The people are the same . The vessels are the same . The company values are the same . We will continue to be Solstad as you know it . This also includes a constant focus on being competitive , operational excellence , development of new markets and always with safety as our priority .
I am forever grateful to everyone who contributed during the long restructuring process of Solstad . Creditors , shareholders , advisors , but most of all to the internal group of people who worked day and night to the best for the company . Thank you very much .
As 2020 comes to an end , I would like to take this opportunity to thank everyone onboard and ashore for the hard work and dedication shown during the year . At the same time , I wish all Colleagues , Families , Shareholders , Clients , Suppliers , Banks and least but not last our Pensioners a Merry Christmas and a Prosperous New Year .
Let ’ s finish 2020 off strong and bring on 2021 !
Lars Peder Solstad
Chief Executive Officer