Deep Sea Supply: 10 Vessels Laid Up and More to Come
Deep Sea Supply, the Norwegian PSV and AHTS proprietor managed by billionaire John Fredriksen, says it now has 10 vessels in lay-up and extra are anticipated with nonetheless no indicators of market restoration within the brief to mid-term.
The lay-ups have been introduced within the firm’s third quarter financials report launched Friday. In 3Q 2015, the corporate reported consolidated revenues of US$33.6 million, down US$2 million in comparison with the identical interval final yr. Deep Sea Supply mentioned the discount was primarily attributable to decrease utilization attributable to vessels coming off long run charters and decrease charges.
“During the third quarter of 2015, the company has experienced a further weakening of the global OSV markets,” the corporate mentioned in its report. “In Brazil, the state of affairs stays tough with decreased exercise and international flagged vessels being blocked by vessels with native flag. However, for some vessel classes Petrobras has taken actions to resolve this example, and DESS expects blockings of 4 vessels to be lifted.
“The North Sea spot market is difficult with unsustainable charge ranges and low utilization, and many house owners have chosen to put up vessels as a substitute of buying and selling within the spot market. No enchancment out there state of affairs for OSVs is predicted within the brief to medium time period.
“The contract protection for 2016 for the Company just isn’t passable. DESS is presently pursuing some time period alternatives, nevertheless the competitors is fierce and charge ranges are low. As a consequence of the weak market, Deep Sea Supply will lay up vessels that should not have any mounted exercise the following months, and the variety of vessels laid up is predicted to extend from the present 10 vessels.
“In addition to laying up vessels to reduce cost, the Company is also working hard to further reduce operating expenses for the vessels in operation.”
Deep Sea Supply’s fleet consists of 16 AHTSs and 25 PSVs.
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