Interview with Soiltech’s CFO Tove Vestlie

For those who haven’t heard of Soiltech before, could you tell us a bit more about your company, what you do, and the markets you target?

We’re a technology company focused on creating innovative solutions for offshore waste handling. Our primary focus is on handling, recovering, and reusing waste produced offshore, such as contaminated water anddrill cuttings (broken bits of rock removed from a borehole). With our technologies, we’re able to treat the wastewater on location for discharge into the sea within the prevailing discharge regulations.

We are a providing a service to our clients, which means we do not sell the equipment. Instead we place our equipment, or our technologies that we like to say, on the client’s locations and operate it with our own personnel. We have several medium and long-term contracts, with bluechip clients, which provide a stable cashflow. In the last year, we have operated in about 10 countries. Our main office is in Norway.We have about 130 employees, whereof 20 onshore and 110 field engineers. About 73% of our revenue in Q3 2024 came from Norway, with the rest from international markets.

We were founded in 2011, and two of our founders, JanErik Tveteraas (CEO) and Glenn Åsland (COO), are still with the company. We’re positioned in a market that’s increasingly focused on sustainable practices, where our technologies supports clients who are looking to make that green transition.

Could you tell us more about your market-leading Slop Treatment Technology? What are your advantages, and how do your products compare to those of your competitors?

Our Slop Treatment Technology (“STT”) is a unique solution, it has high-capacity and is energy-efficient, while having minimal environmental impact. Simply put, contaminated water enters a 20-foot container, where water and oil are separated by use of the technologies inside. The oil can then go back to clients for reuse and notably only about 5% of the waste needs to be transported to shore. This substantial  waste reduction makes the STTt cost-effective, reducing logistics costs and CO2 emissions by reducing the dependence on supply boats and transport on land to the treatment facility.

One of the key advantages is that our STT technology is entirely mechanical, which means that we don’t need to use any chemicals, something our clients value highly. In the North Sea, we’re market leaders, with around 60% of installations using our technology. Starting from scratch, we have managed to establish a strong position in a market with high entry barriers. Unlike others who spread focus across multiple product lines, we concentrate solely on waste treatment and handling. It’s our specialty, and we’re committed to it.

You recently won a contract for pipe cleaning, where you use your proprietary STT. What does the road ahead look like in terms of winning additional contracts?

Our water treatment technology (STT) is currently used on about 24 installations. Our growth strategy includes expanding services with existing clients, especially in cuttings handling where we see great potential.

We’re also seeing opportunities in international markets as global discharge regulations are tightening. We’re targeting regions such as the Middle East, South America and West Africa, where demand for Soiltech’s solutions is likely to grow.

In your Q3 report, you mention that you believe in an upward trend and expect significant momentum in the coming years. What is this based on?

Our optimism comes from a few different areas. We’re investing heavily in expanding our service scope, especially in cuttings handling. As of Q3, we have approximately 100 million NOK invested in new equipment, which is available for new projects.

We also expect our international revenue share to grow as regulatory changes increase the need for our services. Soiltech has a strong foothold in the market, and with these changes, we see the trend continuing upward.

Where do you see Soiltech in 3 years?

The last few years have been an incredible journey. We have a strong onshore organization and experienced field personnel, and we’re continuously investing in equipment, people, and training. With regulatory changes in the EU and worldwide, and the industry’s focus on more sustainable operations, we’re well positioned for future growth.

So far, we’ve been growing each year, and we’re confident this trend will continue. We’re on a great path with a solid foundation for expanding internationally.

Can you mention three reasons why Soiltech is a good investment today?

• Soiltech is an innovative technology company with sustainable solutions that match the industry’s need. With regulatory changes, demand for our services is only going to increase.

• We have strong relationships with leading companies like Equinor, Aker BP, Odfjell Drilling, Noble and Transocean. They give us great feedback and continue to use our services. Once we’re onboarded, they tend to keep working with us. 

• Our business model is scalable, and we’re focused on maintaining our profit margins. Soiltech is a long-term player in a growing industry that will stay vital for years to come. We’re here to make that energy transition possible.