More Lay-Ups at Solstad Offshore

Norwegian offshore companies supplier Solstad Offshore says persevering with weak market situations will power the corporate to lay-up a further 10 vessels, resulting in the elimination of roughly 300 jobs by the top of 2015.

The lay-ups have been revealed Tuesday within the firm’s 2nd quarter and 1st half outcomes.

Solstad says that the lay-ups, which is able to primarily impression the corporate’s platform provide vessels (PSVs) and anchor dealing with tugs (AHTS), are pushed by the weak spot market within the North Sea and worldwide as the results of the low oil costs.

At the top of Q2, Solstad already had 3 vessels in lay-up, together with 2 PSVs and 1 smaller AHTS.

“The spot market in the North Sea for PSV’s and AHTS’s is characterized by overcapacity and approximately 50 vessels of these types is currently in lay-up,” Solstad mentioned in its report. “In the CSV-segment, the activity has been higher, in both the North Sea and worldwide. The general market outlooks are still weak and have not changed during the summer. In addition to low oil price, the uncertainty in Brazil and the sanctions between EU/USA and Russia have not changed to the better for the market. The company expect that the market will continue to be weak in the remaining part of the year and also in 2016.”

Overall the corporate’s fleet consisted of 46 wholly owned or partly owned vessels consisting of 20 development service vessels (CSVs), 17 AHTS’ and 9 PSVs on the finish of Q2. The firm additionally has one vessel underneath development.