Tekmar Group PLC Update on Tekmar Energy's Cable Protection System (3346X)

TIDMTGP

RNS Number : 3346X

Tekmar Group PLC

04 May 2021

4 May 2021

TEKMAR GROUP PLC

("Tekmar Group" or the "Company")

Update on Tekmar Energy's Cable Protection System

Tekmar Group (AIM: TGP), a leading provider of technology and services for the global offshore energy markets, provides an update in response to commentary provided by Ørsted in its Q1 interim report, published on 29 April 2021.

Ally MacDonald, CEO of Tekmar Group, commented: "We note the comments made by Ørsted in their recent interim report relating to their discovery of array cable issues on a number of their wind farms across the UK and Continental Europe, and more specifically, in relation to cable protection systems. We are in discussions with Ørsted relating to the protection of their installed array cables on one offshore wind farm project, namely Race Bank in the UK, and are supporting them to identify the root cause and remedial actions through standard operational engagement.

The main issue noted by Ørsted relates to abrasion of legacy cable protection systems ("CPS") caused by movement of the CPS over the rock-scour installed on the seabed. Ørsted highlighted that this was a change in cable installation methodology across ten projects, where a second layer of rock was not used to stabilise the cable.

The installation and maintenance of cables and cable protection systems in challenging subsea environments is complex and failure can be the result of many factors, including areas we are not involved in such as installation and scour protection. The technology solution continues to evolve as the industry matures to meet the changing requirements to support offshore wind projects, such that CPS abrasion is not expected to be an issue for future installations.

At this stage, in relation to our ongoing discussions with Orsted, we do not anticipate a material financial impact for Tekmar Group and we will provide shareholders with further information as and when appropriate."

Enquiries:

 
Tekmar Group plc 
 Alasdair MacDonald, CEO 
 Sue Hurst, CFO                                        [phone] 
N +1 Singer (Nominated Adviser and Joint Broker) 
 Rick Thompson / Rachel Hayes                          [phone] 
Berenberg (Joint Broker) 
 Chris Bowman / Ben Wright / Ciaran Walsh              [phone] 
Bamburgh Capital Limited (Financial PR & Investor 
 Relations) 
 Murdo Montgomery                                     [phone] 
 

About Tekmar Group plc - www.tekmargroup.com

Tekmar Group plc's vision is to be the leading provider of technology and services for the global offshore energy markets. The Group has five primary operating companies; these are Tekmar Energy Limited, Subsea Innovation Limited, AgileTek Engineering Limited, Ryder Geotechnical Limited and Pipeshield International limited.

Tekmar Energy is a global market leader in protection systems for subsea cable, umbilical and flexible pipe. Tekmar Energy has been trusted to protect billions of Euros worth of assets in the offshore wind, oil & gas, wave, tidal and interconnector markets since 1985 .

Subsea Innovation is a global leader in the design, manufacture and supply of complex engineered equipment and technology used in the offshore energy market. Its products include large equipment handling systems which operate on the back of pipelay installation vessels; emergency pipeline repair clamps (EPRC) which protect major oil and gas pipelines, and bespoke equipment for use in the construction of offshore energy projects.

AgileTek Engineering is an award-winning subsea engineering consultancy for offshore energy projects. AgileTek helps its clients de-risk projects through advanced computer simulation and analysis. AgileDat, a division of AgileTek, provides software development, cloud architecture and data analytics services.

Ryder Geotechnical provides expert geotechnical design and consulting services to the offshore wind and subsea oil and gas sectors. Services include offshore structure foundation design, geohazard assessment and subsea cable routing and burial assessment.

Pipeshield International is a market leading provider of specialised subsea protection solutions in the form of concrete mattresses used for the stabilisation and impact protection of subsea equipment in areas where they cannot be buried and further to limit the development of scour (seabed erosion) particularly local to that of a foundation, pipeline or in marine ports.

Tekmar Energy is headquartered in Newton Aycliffe in the United Kingdom; AgileTek operates from an office in London; Subsea Innovation has its head office and manufacturing centre in Darlington, United Kingdom. Ryder operates in Newcastle and within AgileTek London, Pipeshield headquarters are in Lowestoft with manufacturing in Montrose and Blyth. Tekmar Group plc also has strategic supply bases and representation across Europe, Africa, the Middle East and Asia Pacific.

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May 04, 2021 02:00 ET (06:00 GMT)