As featured in Energy Voice, Anderson Anderson & Brown Corporate Finance ("AABcf") is delighted to share with you our quarterly Deals+ update for Q3 2021, highlighting selected Energy M&A and Fundraising transactions across the UK.
Reflecting on Q3 2021
During Q3 2021 we have seen continued M&A activity within the global energy markets. A major contributing factor to this has been the price uptick of Brent Crude, jumping above $80 per barrel for the first time since October 2018. Brent is showing no signs of reversing during Q4 2021, with the natural gas shortages incurred throughout the quarter causing an extortionate rise in US and European gas prices, all resulting in Saudi Aramco estimating the shortage has added around 500,000 barrels a day to Brent consumption.
Elsewhere, over-capacity continues to be a headwind amongst oilfield service providers pointing towards the continued need for “transformational” deals, be that carve-outs, asset sales or divestments. The growing shift towards capital-light business models will likely drive activity across the sector as consolidators actively seek bolt on acquisitions to streamline operations. Stand-out deals in the quarter saw Ithaca Energy continue their acquisition of North Sea assets with the c.$1b purchase of Marubeni’s North Sea assets and Greencoat UK Wind Plc continuing to add to their windfarm portfolio with the acquisition of the Andershaw wind farm from Norwegian firm Statkraft AS for consideration of £121m.
Throughout Q3 2021 private equity investors and large corporates have continued their move into the renewable energy space. We have seen Edinburgh based Nova Innovation who develop and manufacture direct drive tidal turbines receive £6.4m from Scottish National Investment Bank along with our own AABcf team who advised electrical vehicle infrastructure provider FOREV in their successful raise of £2m from Scottish National Investment Bank. Furthermore, AABcf also advised on BGF’s £3.5m investment into well-bore isolation specialist Isol8, closing a busy quarter for the team.
As we head into the final quarter of the year, we continue to maintain strong positive momentum with a healthy pipeline of deal opportunities. Our AABcf team will continue to be on the look out for strategically compelling transactions for clients. If you would like to discuss any opportunities or have any questions please do not hesitate to get in touch.