Golden Energy Offshore Services plans private placement, strategic measures

Golden Energy Offshore Services ASA (GEOS) is considering a private placement of 40,000,000 new shares at an offer price of NOK 8.00 per share, aiming to raise gross proceeds of NOK 320 million. This follows liquidity difficulties reported in Q3 2025, which included overdue taxes and delayed payments. The proceeds will be used to settle overdue payables ($8.0 million), pay employee compensation ($2.0 million), repay several short-term loans totaling approximately $13.3 million from affiliates and its chief executive, cover transaction fees ($2.0 million), and provide $5.4 million for general corporate purposes.

Key shareholders, including Clear Ocean GEOS MI LP (39.03%) and Pelagic Investment Fund RAIF V.C.I.C. PLC (23.63%), have pre-committed to subscribe for a significant portion of the offer shares. The private placement deviates from shareholders’ pre-emptive rights, justified by the urgent need for financing. GEOS will also appoint a dedicated full-time chief financial officer and has committed to selling at least two vessels in the near term, subject to market conditions and prepayment fees.

The company highlights GEOS's modern fleet with an average age of 8.7 years, significantly younger than its peers, and a versatile PX-121 design for both oil & gas and renewables work. However, softer market conditions in 2025 have impacted dayrates and utilization, with contract backlog declining. The refinancing of its expensive SLB facility has reduced cash break-even rates and freed up $30 million in liquidity over the next three years.