Floating wind
Archer has decided to no longer pursue offshore wind EPC projects and will explore strategic options for Archer Wind, including partial or full divestment.
Archer has served as an engineering, procurement and construction (EPC) contractor for the 3-MW Culzean floating wind turbine project designed to supply electricity to the Culzean gas platform in the central North Sea offshore Scotland.
The floating wind project is being delivered for NEO NEXT+ Energy following the merger of TotalEnergies’ UK upstream business, NEO Energy and Repsol UK.
Archer said it will pause shareholder distributions amid commercial challenges in relation to the Culzean wind project, which contributed to an increase in its net interest-bearing debt to USD 525 million (EUR 464m).
The company added that while main Culzean project deliveries have been completed, negotiations with the client related to material variation orders, and a claim against a subcontractor, have taken longer than expected and remain unresolved.
Archer plans to revisit the shareholder distribution programme early 2027.
“Whilst it is disappointing to pause our shareholder distributions, we aim to resume our policy of shareholder distributions once it is prudent to do so and specifically when there is greater visibility on the resolution of ongoing commercial discussions relating to the Culzean project,” said Archer’s CEO, Dag Skindlo.
It was recently reported that the single 3-MW floating turbine has been towed from Norway to its site at the gas field.
The project is currently undergoing offshore commissioning, which is the responsibility of the client and Archer is supporting with personnel, the company said.
Archer Wind was set up in 2021 as a technology and solutions provider for the floating offshore wind market. The business has invested in floating foundation developer Ocergy Inc.
