2026.10.08 | TB | Energy | Three60 Energy Primer

Primer • 24 Sep 2026

Companies: POFC.F US

Expert Former Senior Executive in Sales & Marketing

Ananya Arakkel (Analyst) — Third Bridge Sector Analyst

Agenda

• Over 15 years’ experience in the energy services space
• Around four years’ experience at Three60 Energy (left within the last year)

Introduction

Analyst: Please could you state I agree or I disagree to the following statement: You understand the definition of material non-public information and agree not to disclose any such information, or any other information which is confidential, during the Primer Interview today.

Expert: I agree.

Questions

Can you describe what Three60 Energy does and the products and services it provides?

Expert: Three60 is an international engineering and operations service company providing their service to the energy and industrial sectors globally. It was established in 2016. It's private equity-backed at the moment, as far as I know, Piper Sandler, a US private equity firm owns the majority of Three60. The other part is owned by management and its founders. It's a little bit outdated. I think the global workforce is 1,100-1,200 people. It has, since its establishment in 2016, grown predominantly by acquisitions from smaller companies, like Ridge Engineering, Fraser Well Management and Samphire Subsea, for example, to name a few.

Three60 supports full life cycle asset management, asset maintenance, things like that, from early-stage engineering and design to operations, maintenance, digital optimisation and late-life decommissioning. Three60 services include concept and detailed engineering, asset integrity management, maintenance engineering, operational readiness, digital services, digital efficiency improvements, data analytics, predictive maintenance and regulatory assurance. The company also delivers specialist subsea, well abandonment and offshore removal expertise and execution, project execution, which is very important. Beyond oil and gas, Three60 Energy works in offshore wind, carbon capture and storage, nuclear and defence. It operates across the world, the globe and there are six product lines, which are subsurface, wells, subsea, EPCC, operations and product solutions, which is a mixed bag of products and services.

What is the value proposition of Three60's products and services?

Expert: I think Three60's idea is that, basically, by outsourcing, our customers can work more efficiently, cost-efficiently and are able to do the things that they're really good at. It's just a matter of proper allocation of resources and money. It's about reducing life cycle cost and risks, while improving performance, safety and digital maturity across complex energy and industrial assets. Like I said, it's mainly an outsourced service.

Analyst: Does the company have any partnerships with any other companies or industries?

Expert: Yes. There are a number of partnerships with smaller companies. I think the one that is most important is the partnership with AF Group, which is a Norwegian company, a civil engineering company, and one of the divisions is decommissioning. They own and operate a decommissioning yard in Norway where, basically, they take the offshore platforms and the offshore assets for demolition and recycling. That's a very important partner. One of the recent contracts they have won, Three60 is a decommissioning contract, which is quite big for major oil company. It has been published on their website that the major oil company is BP. But I know that BP is fairly lowkey. They don't want to make it too public.

Analyst: What might be the main activities that Three60 handles in-house vs outsources?

Expert: Most of the work, let's say, the engineering and project management work will be performed by in-house resources. When it comes to more operations, so the actual working on a drill rig or a vessel that transports materials from the shore to the offshore platform, all that is third-party services.

Analyst: Does Three60 own any equipment or has the company outsourced it? Or does someone else manufacture for it?

Expert: It's a good question. No. They don't own any equipment apart from, in the product solutions, they own some fabrication sites where they fabricate equipment. That's not really relevant. I think Three60 makes it quite a big deal about it. They're not asset owners. They always go for the assets that are most efficient and the best option, which are owned by others.

Analyst: How would you describe Three60's position in the value chain, given you mentioned that the company is very relevant within certain industries and in various management styles? Where does it sit between the owner and the other companies? Where does it lie in the entire workflow?

Expert: The whole process can be covered by Three60 either by themselves or by subcontractors. There can also be distinct engineering scopes, which are quite well-defined and covering just a small part of the value chain. It's difficult to answer that question really, where they can do a lot. It's all tailor-made, but it can be standardised as well. It's very conflated also, I'm afraid.

What is the full range of industries and business sizes that could use Three60's products and services? What might be the company's TAM?

Expert: It's a simple question and a difficult answer. Basically, it ranges from an energy business, oil and gas, it ranges from small entrepreneurial licence developers. That could be a group of one or two people, 2-3 people, very small. Sometimes they just want to develop one licence by drilling an exploration well, for example, which is one side of the spectrum, very small, to major oil companies like BP and Shell, and you name them, and everything in between. Basically, it's everything.

Analyst: Could the company tap into any areas or verticals that it hasn't yet tapped into?

Expert: When you talk about regional areas, I think Latin America, South America, Brazil, Guyana, so Suriname and British Guyana are still areas where they could focus more on, and West Africa, for example. One of the areas that Three60 started looking at is the Middle East. They opened up an office a couple of years ago and that was certainly one of the growth areas that Three60 identified. But I can imagine that the geopolitical situation at the moment is changing the whole picture again.

Analyst: Might there be any specific industries that you think are relevant enough for the company to tap into?

Expert: Yes. I think the transition energy areas are very important. I know Three60 are working on that, but it's more my personal opinion than anyone else's. I think there could be more focus on that, on energy transition areas, so sustainable energy, carbon capture storage, wind, things like that.

Can you profile Three60's typical target customer within the discussed range of industries and business sizes? What might be the ICP [ideal customer profile] or customer sweet spot for the company?

Expert: I think, like I said, it ranges from smaller licensed developers to major oil and gas companies. Let's say the smaller licensed developers and I'll give you a name. It's a company that doesn't exist anymore because they have tried to develop the licence. They raised investments. We drilled an exploration well for them, but they didn't find anything. That company was called North Sea Natural Resources Limited and I think they raised capital to drill well offshore. That's, let's say, on the smaller size of the spectrum.

Analyst: Could you quantify the smaller developers through employee count or anything else?

Expert: Basically, it's a group of individuals. For example, buy a licence or put up money for development of a licence in a certain block. Many countries work with licence rounds. But as an interested party, you can subscribe to a licence and basically say, "Okay, I'm interested in this or that block and I'll drill or do some seismic survey work there." Then, the country or the government may decide to grant a licence to that certain party. Sometimes, it's just a big major oil company that applies for a licence like that, but there are indeed smaller groups of people doing that.

Analyst: Could you define the smaller groups through the number of people involved?

Expert: It's very case-by-case, I have to say. The thing is in the North Sea area, which is an important region for Three60, this particular sort of client is diminishing because, basically, the countries around the North Sea are moving out of oil and gas. What you have seen over time is that licence developers in the North Sea area are going down in numbers, reducing in numbers. Still, there are parties like that in Africa or in the Middle East where that happens.

Analyst: Might there be a difference between a small licence developer group and a mid-sized or larger one?

Expert: Yes. You're talking about, let's say, a couple of tens of millions of dollars in company size. Mid-sized oil companies, you're talking about a couple of billion value in size of the company. Then, the other side of the spectrum, the major oil companies, you're talking about hundreds of billions of dollars size.

Analyst: Might there be any specific industries or customer types that are the company's typical target?

Expert: Yes. Let's say it's predominantly energy companies, oil and gas companies, but also companies that are active in wind farms, offshore wind farm developments. Sometimes, Three60 works for governments. Onshore, Three60 also works for mining companies mainly in the UK and some industrial companies as well. I think if you summarise it all, Three60 is very much a company that provides services to the energy business and the energy business mainly consists of oil and gas companies.

Analyst: How much revenue would you say the energy sector contributes to Three60 in a percentage range?

Expert: That must be 81-90%. The other, for example, some of the mining projects or industrial plant maintenance, for example, that must be less than 10%.

Analyst: What might be the revenue contribution from the government vertical?

Expert: That's a small area. You're talking 0-10% or something. It is important because if you work for governments, governments aren't [a relevant profile]

Analyst: What might be the revenue contribution from the wind farm companies?

Expert: I think wind farm companies are 81-90%. I think that wouldn't exceed more than 11-20% of that 81-90%.

Analyst: Might wind farm companies be a part of the larger energy sector?

Expert: Yes. Energy sector is comprising of oil and gas, traditional oil and gas, hydrocarbons. But also, energy transition, like wind farm, CCS, geothermal, all kinds of very small market sectors. I would say oil and gas dominates it and that's exceeding 71-80% of the energy.

Analyst: Might CCS [carbon capture and storage] and geothermal have similar revenue contributions?

Expert: Yes. That's the rest of it. [I'd] say 0-10% [each], both of them. I don't think that adds up entirely to 91-100%, but yes.

Could you mention any customer names that have either been shared in the public domain or on Three60's website?

Expert: I think BP is an important customer, especially in the field of decommissioning. But also, for more exploration type, exploration and production type of work in the Gulf of Mexico. That's BP. Norwegian operator Equinor is an important one. Ineos, which is an industrial and hydrocarbons group in the UK is an important client. Harbour Energy. Petronas in Malaysia.

Which key regions does Three60 derive revenue from?

Expert: I think there's a North Sea region. That basically constitutes the UK and the Norwegian sectors.

Analyst: Might the UK be the company's primary region?

Expert: Yes. [Then], Norway. Then, North America, the Middle East. Basically, Southeast Asia, Asia, Indonesia.

Analyst: What would you say makes more sense, Southeast Asia or APAC?

Expert: Southeast Asia.

Analyst: Would you say Norway or might the more relevant region be Nordics?

Expert: No, Norway. Because the only country that has oil and gas reserves is Norway. Denmark is also sometimes considered as one of the Nordics.

Analyst: Would you say Denmark as well is a key region for the company?

Expert: No.

How much revenue would you say each region contributes to Three60 in a percentage range? Could you start with the UK?

Expert: It's difficult to really say because lots of the services that are originated, for example, in Southeast Asia are coming back to the revenue stream in the UK. What I'm going to do now is I'm going to speculate a little bit. If you look at the overall revenues of Three60, for example, in 2024, I think the UK would constitute 41-50%. Norway would be 21-30%. Then, North America, 11-20%. Middle East is still in its infancy, so 0-10%. [Southeast Asia], 11-20%.

Analyst: Might it be relevant to mention any Southeast Asian countries?

Expert: Yes. Malaysia is predominantly the most important one. Then, there's Indonesia, Vietnam and I think in India has grown.

What might be the company's core revenue-generating product and service segments?

Expert: The various product lines are subsurface, wells, subsea, EPCC, operations and product solutions.

What might be the revenue contribution from each segment in a percentage range? Could you start with the subsurface segment?

Expert: I would say that's 0-10%. [Wells] is 21-30%. [Subsea] is 11-20%. [EPCC] is 21-30%, I would say. [Operations], same, 21-30%. [Product solutions] is 0-10%.

What might be the revenue model for each segment? Might the revenue model for the subsurface segment be transactional, recurring or reoccurring?

Expert: It's transactional.

Analyst: What might be the revenue model for the wells segment?

Expert: That can be everything. That can be transactional, but it can be recurring as well because there's a large scope. Let's say, the service proposition of wells is well operatorship and that's day-to-day management of wells. That could be recurring.

Analyst: What might be the revenue model for the subsea segment?

Expert: Same answer. That could be transactional. That could be recurring. I have to choose between one, I see. If I have to choose between one, it really becomes difficult. I think, maybe, I'd keep wells and subsea as recurring. [EPCC] is mainly transactional. [Operations] is recurring. [Product solutions] is transactional.

Analyst: Does the subsurface segment have a specific flat fee, given it has a transactional revenue model?

Expert: It's based on the hours of work that are put into it. For example, a certain subsurface scope, I don't know, a seismic interpretation takes 1,000 hours, then it will be 1,000 hours billed.

Analyst: Does a client require a base amount of hours or does it not matter?

Expert: No.

Analyst: Are any of the segments contract-based or do they have one-time purchases?

Expert: Everything is contract-based.

Analyst: How is a contract structured? Is it specifically based on client needs? Might the contract have a basis or does something work for renewal?

Expert: It differs very much. For example, for subsurface contracts, it's sometimes just a PO, procurement order, which is based on the terms and conditions of the customer company. They are standard oil field terms and conditions. For wells, it's mostly a certain type of oil field contract, it's standardised, but Three60 uses its own terms and conditions to a certain extent in a rider. Most of the contracts, it's all contracts. Basically, it's all contracts and it's based on standard contracts that have been modified to suit Three60 and the client, [I'd] put it like that.

Analyst: Might there be a certain time period for a contract with a client?

Expert: Sometimes, it's very specific and it says the work needs to be done in three months' time or even shorter. Or it can be a recurring contract, which can take multiple years and it can be rolled over. It can be renewed. It differs very much.

Analyst: How frequently do customers renew a contract for the same service or another one?

Expert: 3-5 years, I would say, for recurring contracts.

Analyst: Might a specific trigger point or variable make a client extend their contract or renew it again after the 3-5-year period?

Expert: What you typically see is that after three years, when the three-year end gets nearer, the customer goes out to the market and asks others to bid for scope of work. Then, it becomes just a competition again. That's what happens most of the time. Sometimes, a customer is so pleased or doesn't feel the need to go back to the market and just extends it. But I think in general, it's a very competitive market.

What might be a use case for each segment? What service line does the subsurface segment have? How does Three60 offers it to its customer? What might usually be its typical duration and utility?

Expert: Subsurface is anything to do with the underground. So, the detection of hydrocarbon reserves underground, which can be seismic surveys performed by a company, by a customer. Then, the customer asks Three60 to validate that and make an interpretation of the data and to come up with an estimation of how much hydrocarbons are in the ground. That's one of the engineering scopes you can think of. Also, after having produced 10 years, for example, from a reservoir, customers are interested to see what's still there. If there is a way to increase production or to get the last drop out, that also can be done by seismic shooting, seismic data, but also production data and other stuff. That's really desktop engineering stuff, this surface work. What you typically also see is that we combine subsurface scopes with the wells scope. Based on the studies that our subsurface colleagues did, the wells group will then make a plan to do something with the well.

Analyst: How do end customers utilise the wells segment? How might it be different from the subsurface segment based on the customers who utilise it?

Expert: Which customers use subsurface services, you mean?

Analyst: Yes.

Expert: Within wells, it's well engineering, it's project management and it's well operatorship. Well operatorship is basically being responsible for everything to do with the well towards the regulatory authorities. Basically, if something goes wrong with the well, Three60 is the first responsible party to communicate with the government and to cope with the issues. Also, the reporting to the government is important in wells. There are a couple of disciplines within wells, just desktop studies, engineering work, project management and well operatorship. Well operatorship is the type of contract that has most of the recurring nature. Well engineering is more specific scopes that can be performed in a three-month period for a certain scope. That can be transactional.

Analyst: Are the well operators outsourced?

Expert: Yes. Actually, the well operatorship model is an outsourced model in the sense that, for example, just take BP as an example. BP used to do that themselves. But for some wells, they don't do that anymore. They outsource it to Three60. That's the outsourced model. Three60 takes care of the engineering, the management, the logistics, you name it. It's big.

Analyst: What might be a use case for the EPCC [engineering, procurement, construction and commissioning] segment?

Expert: EPCC is very much engineering and design. For example, an oil company who has a production platform offshore and who want to replace a gas turbine by a new turbine, then they ask the EPCC colleagues to design it, to design the replacement, to design how it's being installed, fabricated, everything. It's mainly engineering design stuff, very transactional.

Analyst: What might the operations segment entail?

Expert: I explained the well operatorship to you. That's well operations. That's also technical maintenance operations on offshore assets and onshore assets like plants, chemical plants and stuff like that. For oil and gas offshore business, that's called duty holder ship. Basically, that's one of the most important activities of the operations team, is to take care of the day-to-day maintenance of offshore platforms.

Analyst: What might the product solutions segment entail?

Expert: Like I said, it covers a lot of things. It covers fabrication work, so engineering of certain equipment for cable laying, or for the defence industry where they produce certain equipment that fit on marine vessels, navy vessels, I mean. Also, in the nuclear area, they fabricate equipment to shut off cooling water inlets for nuclear plants mainly in the UK.

Which of Three60's six segments do you anticipate being the fastest growing and potentially driving the largest revenue share in future?

Expert: I think when you look at where Three60 is growing the fastest, it's decommissioning and it's turnkey decommissioning. Basically, that entails subsurface, wells, subsea, EPCC and operations. All the divisions that we mentioned, it's an integrated service offering. All benefits from, let's say, that growth in decommissioning.

Analyst: Do you think any specific segment could grow extremely fast in future?

Expert: Yes. If I would choose, I would say wells and operations.

Analyst: Why do you think it will be the wells and operations segment?

Expert: Because that's based on my view that decommissioning will grow fastest. In the decommissioning market, wells are predominantly the biggest component of decommissioning cost. So, 51-60% of decommissioning is allocated to wells. My reasons to choose operations is because the contract model that's in decommissioning, that's starting to really take off is turnkey decommissioning solutions, which is an integrated surface and operations are the centre of that.

Could you specify the industry that best describes Three60's core operations?

Expert: That's the energy industry.

Analyst: Do you think the company caters to a more specific niche?

Expert: Yes and no. There's the commodity standardised engineering work that Three60 does in all the business lines. So, surface, wells, EPCC and that's engineering design of stuff. It's big.

Analyst: Would you say the industry is energy services or would you like to change it to anything else?

Expert: No. Energy service is good, but it's so non-descriptive in a way. What I usually say about the market that Three60 is active in is that if you want to compare it to a market, then the closest market that you can take is what they call the oil field services market. Oil field services is a specific market that is served by large stock-listed companies like Schlumberger, Halliburton, Baker Hughes, Weatherford. The thing is Three60 doesn't compare to them because it is a different market. In a way, you could say it's a niche market what Three60 does.

Analyst: Would you say the industry is O&G [oil and gas] field services or oil field services?

Expert: I think energy services better describes it because oil field is too limited.

What has the AAGR been for the energy services industry over the last three years?

Expert: Because it's a niche market that is not really tracked, it's difficult to say. That's why I said, sometimes you have to just compare it to oil field services. Oil field services have been growing gradually over the past 10 years by 0-10% per year.

Analyst: What would you say is the case for the energy services industry?

Expert: The specific energy services, for example, turnkey decommissioning services for Three60 is growing faster. I would think that market probably grows 11-20% per annum, which is quite a difference.

What do you think have been the 1-2 key drivers of the industry's growth over the past three years?

Expert: The decommissioning, the demand for decommissioning services is a very important driver. Especially in the North Sea, where oil fields in the North Sea Basin have matured and are at the end of their economic life and then they need to be decommissioned, abandoned properly. Basically, everything that was installed and drilled has to be plugged and removed from the seabed. That's a growing market.

What do you think the industry's AAGR will be over the next three years?

Expert: I would assume that growth will be 11-20%.

What do you think will be the 1-2 key drivers of the market's future growth?

Expert: That will be, first of all, the scarcity of resources. What I mean by that is HR. What you see is that skilled people are scarce. I think that will be one of the drivers and that will be a driver for outsourcing by customers to the likes of Three60. Also, I think based on the whole geopolitical situation, energy reliability and having your own domestic energy production is going to be very important. I think at the moment, what we're seeing is that the Middle East, which a lot of people looked at a couple of years ago as an alternative for providing gas, or replacing Russia as a gas producer or replacing the United States as a gas producer to Europe now fell away. There's no gas coming out of the Middle East. I think there will be a development where the governments around the North Sea will allow further drilling and further production to take place.

To what degree do you think the industry is correlated to economic cyclicality? Would you say it's a counter-cyclical, very cyclical, somewhat cyclical, somewhat resilient or resilient market?

Expert: There are two elements in Three60. One of them is the transactional scopes are very cyclical, so basically, based on the oil price. The recurring scopes are day-to-day management. It has to happen. Whether the economy is in a boom or the economy is in a bust, you need to maintain the platforms and all that, the wells. So, that is resilient.

Analyst: Would you say the industry is somewhat resilient or resilient?

Expert: I'm in doubt between somewhat cyclical and somewhat resilient. I still think it is cyclical, so somewhat cyclical.

Analyst: Why do you think the industry is somewhat cyclical?

Expert: It's oil price-related.

Based on public information, what impactful technological evolutions or innovations should we anticipate in the industry over the next 3-5 years?

Expert: This was the penultimate question. I think digital life cycle solutions based on AI, which is going to be important, and a move for outsourcing.

Analyst: Could you expand on the digital life cycle solutions based on AI point?

Expert: What you see is that digitalisation, if that's a word, becomes more and more important in our industry. For example, the development of what they call digital twins, a digital twin of the actual offshore platform where you can virtually walk through the platform on your screen and basically know every bit of equipment and the dimensions and what have you, that will increase maintenance efficiency. It will reduce personal logistics because, all of a sudden, you don't have to go to the platform physically to monitor the state of the platform. It's just a different way of looking at it. My view is that AI will even accelerate that whole digital twin model and the impact it has on maintenance and operations in the future.

Are there any other downside risks that you believe might materially impact market growth over the next three years?

Expert: Yes. I think one of the intangible factors is the oil price. If the oil price is high, everything is possible. The investments are high and all that. At the moment, the geopolitical situation is so uncertain that it's basically pulling the carpet out of everything in the Middle East, which was believed to be the saviour of the industry, is now dry. That geopolitical situation will be very important going forward.

How fragmented do you consider the energy services industry to be? Would you say it's a monopoly or do 2-5 strong players capture the majority of the market share? Is it fragmented or highly fragmented?

Expert: I have spent a lot [of time] thinking about that because again, because of Three60's unique offering integrating and combining everything, it's almost a monopoly. There's only one other company that's comes close to what Three60 does and that's Petrofac. But if you cut it in smaller pieces, all the surface lines, then there are lots of companies offering all those services separately. Then, it becomes fragmented.

Analyst: What would you say is the case if there was a way to combine Three60 with its top competitors?

Expert: I think 2-5 strong players is probably the best.

How protected would you say the market is? What might be the barriers to entry in it?

Expert: It is quite protected. You have to set up a lot of management systems, which have to be audited and certified by companies like DNV or an Origin. Yes, DNV or Lloyd's Register, you name them. It costs a lot of effort and time and money to build those systems. Also, just acquiring the knowledge and the skills, I think the barriers are fairly high.

What might be the barriers to scale in the industry?

Expert: I think if you have got everything ready like Three60 has, then it's probably easier to scale it up.

Who might be Three60's top three competitors?

Expert: I think the first name that comes to mind is Petrofac. The next company that springs to mind is Wood Group. Then, I would say a company like Well-Safe Solutions.

What might be Three60, Petrofac, Wood Group and Well-Safe Solutions' market shares in percentage ranges? Could you start with Three60?

Expert: I just have to guess because like I said, it's not marketed. It's all diversified and fragmented. If you just summarise it, I would say it's 11-20%. [Petrofac] is a bit bigger, 21-30%. [Wood Group], 21-30%. Well-Safe, you're back to 5-10%.

What was each player's revenue over the last financial year – USD 0-100m, USD 100m-200m, USD 200m-300m, USD 300m-400m or higher? Could you start with Three60?

Expert: The last published financial year, it was just GBP 100m-200m in 2023. [Well-Safe] is a private company in the hands of a couple of private equity investors. To be honest, I think their revenue should be GBP 100m-200m.

What was each player's revenue growth rate in the past financial year in a percentage range?

Expert: [Well-Safe], I think it would be 6-10%.

What might have been each player's growth driver? Would you say Three60's growth driver has been organic, acquisition-based or mixed?

Expert: That was acquisition-based. I think Petrofac, actually, I'm not sure their revenue is growing at all. They have been under a lot of, they have been in a difficult situation because they were taken to court for bribery cases. Their risk management isn't very good. They had some heavy blows, the company, and they had to sell off some of the elements of the company. I don't think they can acquire any company, so it would be organic. [Wood Group], basically, the same story. Also, in a lot of stress with the banks, so they don't have any money to grow at all.

Analyst: Would you say Well-Safe's growth has been organic as well?

Expert: Mixed.

What might be the average EBITDA margin for the players discussed in a percentage range?

Expert: It's very low. It's 0-10%.

Would you say the players are above, in line with or below the industry's 0-10% EBITDA level? What might be Three60's EBITDA position?

Expert: It's on the industry. [Petrofac] must be below. [Wood Group], also below. [Well-Safe, I'd say] below as well.

What might be each player's differentiating factors? Does Three60 have anything unique in its ability?

Expert: It's a very comprehensive offering of services. The integration of services to offer turnkey solutions is one of the differentiators in the proposition of Three60.

Analyst: Does Petrofac offer anything differently?

Expert: Yes. Also, they offer integrated solutions. They're not as broad as Three60. I don't know exactly what's left of the company since they reorganised and restructured it. They are fighting for their lives.

Analyst: Does Wood Group offer anything different in its services or in the way that it deals with its customers?

Expert: No. They're one of the dinosaurs of the industry and it remains to be seen whether they will survive or not.

Analyst: Could the length of the company's existence in the industry be a differentiator?

Expert: Yes. Wood Group is certainly one of the companies that has been in existence for quite some time. Petrofac is medium. They have been around for a while.

Analyst: What would you say are Well-Safe's differentiating factors?

Expert: Well-Safe is an interesting one. They combine engineering and project management, asset ownership. They own their own rigs and their own vessels.

What do you think are customers' top three KPC [key purchasing criteria]? How might they rank by importance?

Expert: Price is definitely the primary one. I think the second factor would be the capability to deliver. [The third one] is probably quality and safety-related.

How important do you think price is to customers in the market? Would you say the services are commoditised, somewhat commoditised or not commoditised?

Expert: The way these companies, our customers work is that they evaluate everything in their evaluation models. Basically, they put prices to everything. Quality offer, reliability, safety and all that. I think somewhat commoditised would describe it because what they're trying to do is they're trying to bring something that is niche back to a commodity by evaluating it the way they do, and somewhat commoditised, I would go with.

What has been the key driver of Three60's historical growth? Did the company do anything specific in the past to grow?

Expert: I think the key driver is the ability to offer integrated solutions.

How fast do you think Three60 could grow annually over the next three years?

Expert: I think that would be 11-20%.

What could be some of the most interesting ways to grow Three60? How would you grow the company organically, such as through ease of visibility, geographical locations, pricing or anything else, if you were to run it today?

Expert: I did answer those questions. I think the most interesting way to grow the company is to grow organically in the decommissioning area.

Analyst: Could you expand on that?

Expert: A growth path they have already chosen, but there's so much potential to further growth and further expansion of what it is that I think that's certainly the way forward for this company in my view. Providing turnkey solutions, integrated service solutions for decommissioning, but also for exploration and production.

How would you improve the company's margins?

Expert: That's an interesting one. I think because the company has grown on the basis of acquisitions, it sometimes feels like it's still not integrated as well. There are various blood groups in the company. I think the only way to really maximise and make the company effective is if management succeeds in integrating all the different companies into one group.

I think risk management, improving risk management and management systems, is really key because the company is taking on more risk. That's not a problem as long as you know how to deal with the risks and how to manage them. But sometimes, I get the impression that's not entirely the case at the moment. If that spins out of control, that is what happened with Wood Group and Petrofac, the other competitors, then you will go in the same direction.

Would you do anything differently to grow the company through M&A?

Expert: No. I think at the moment, the company is, actually, I think, especially in the six service lines, the product solutions, I think that's too much of a mixed bag. I think the risk there is to lose focus. They don't make sense. My opinion would be selling off some of these companies and basically being on the primary service areas. It's not Three60 buying more companies, but it is actually selling off some of the components. Three60 as a whole is on the market.

Based on any publicly announced acquisitions, how would you describe Three60's M&A strategy? Would you say the company has carried out aggressive or opportunistic M&A?

Expert: It used to be aggressive because they bought companies left, right and centre. I think they have built the company now. It's ready to grow organically. I think, M&A-wise, there won't be a lot of new announcements other than the company selling off or being sold.

Does it make sense for Three60 to acquire, merge with or be acquired by any other players in or outside the space?

Expert: No. I think it will be acquired by someone else.

Analyst: Could you provide any examples of companies that could acquire Three60?

Expert: Another engineering house or one of the oil field services companies, or another private equity player.

Is there anything that the market does not properly understand about Three60? Are there any misconceptions about the company?

Expert: Yes. I think the general misconception with Three60 is that it's being compared to oil services, oil field services companies like Schlumberger, Halliburton, Baker Hughes and Weatherford. They touch each other, but they don't overlap each other. It's different companies, different market, different dynamic.