By Jonas Cho Walsgard

(Bloomberg) — Shipping is about to guide a restoration in world offshore markets which were battered by plunging oil costs, in line with one among Norway’s largest dealmakers over the previous three many years.

Mads Syversen, the chief govt officer at Oslo-based funding financial institution Arctic Securities, mentioned he’s seeing the primary indicators of a decide up in exercise as benchmark North Sea oil costs have rebounded about 60 p.c since hitting a 12-year low in January.

With crude nonetheless under $50, transaction exercise within the rig trade continues to be near zero however an enchancment might come on the finish of the yr or initially of 2017, mentioned Syversen, 52, who helped kind Arctic in 2007 after leaving SEB Enskilda.

“We’re at a price level that some will see as attractive with a bit longer perspective,” he mentioned in an interview Friday. “An improvement isn’t high activity. But I agree that we are close to something of a bottom.”

Arctic Securities posted income of 626 million kroner ($77 million) in 2015, the best since 2007, whereas pretax greater than doubled to 145 million kroner from a yr earlier.

Syversen, who has been a long-time adviser and dealmaker for billionaire Kjell Inge Roekke, mentioned that delivery will most likely prepared the ground within the restoration, the place he’s additionally backed by one other Norwegian heavy, billionaire John Fredriksen. In truth, Arctic in February shaped a ship broking firm with Fredriksen’s Geveran Trading Co.

“The activity level in shipping will come back before offshore,” he mentioned. “Buying and selling ships where the underlying market is working. We see within dry bulk that activity have increased some.”

The Norwegian offshore trade is struggling as income has dwindled with falling charges and expiring contracts. Many firms are restructuring their debt and elevating new capital.

The 12-month default fee on Norwegian high-yield oil and fuel bonds climbed to 23 p.c in March, in line with Stamdata. The largest default to date was when Mexican oil service supplier Oro Negro didn’t make a January curiosity fee on a $677 million bond, in line with Stamdata.

Syversen mentioned that these processes are very difficult.

“There are often many counterparts, several banks, bondholders,” he mentioned. “It’s important that the banks treat the bondholders well. What about the equity holders? It’s a triangle that must be put together.”

Though most of Arctic’s mandates are inside restructuring and refinancing, the financial institution can be working with a number of preliminary public providing mandates for this yr.

“I see an attitude, compared to January, that is much more interested in looking at the opportunities that are out there,” he mentioned. “It supports that there’s an interest. Generally activity and interest is better than in January.”

© 2016 Bloomberg L.P