Reuters interview with Swiber. Plans to tap growth in the offshore windpower sector.

Offshore oil services firm Swiber said it sees buoyant orders in the next 5 years from oil & gas explorers, and plans to tap growth in the offshore windpower sector.

"For a company typical to our industry, we may see order book grow to US$1-2 b in the next 5 years," Swiber's CEO Raymond Goh told Reuters in an interview on Thu.

The firm's order book stood at US$664 m at end-Jun. Swiber plans to ride on the expansion of the deepwater oil & gas industry, which it sees growing by over 30% yoy for the next 4 years as oil companies look further afield to profit from high crude prices.

Apart from supplying bigger vessels made for deepwater, the firm has also invested in new designs and technologies such as its "Equatorial driller" and is looking to secure deepwater drilling contracts in West Africa and Brazil, Goh said.

Swiber will expand its fleet size to 51 vessels by '10, up from 30 vessels to-date, through both bank borrowings and sale and lease-back agreements. The gearing ratio will be maintained at its current level of around 1 times, added Goh.

Swiber posted Q2 earnings of US$20.8 m for the Apr to Jun period on Wed, more than triple the US$6.3 m a year ago, on the back of surging revenue from its offshore construction projects.

Swiber, with a market cap of US$455 m, provides construction, installation and engineering services and competes with local rivals such as Ezra and CH Offshore.

Goh also expects developments in the offshore windpower industry to drive future growth, potentially contributing as much as 10% of Swiber's revenues in the near future.

The global offshore windpower market is expected to triple to be worth over US$6 b by '12, according to data from market researcher Douglas-Westwood.

Countries are boosting renewable power to cut fossil fuel emissions of greenhouse gases, blamed for global warming. Swiber is on the lookout for potential contracts with European energy companies involved in offshore windpower, and hopes to sign a contract in a year's time.

"It is unimaginable that oil prices will go down to US$40 again, and so there'll always be room for these kind of activities, especially in Europe. The only realistic alternative energy now is wind power," Goh said.

Although rising steel prices have become a major concern for players in the offshore energy industry, Goh said Swiber will not be significantly hurt as its rig-building is outsourced to shipyards and prices are fixed in its contracts.