By Henrik Stolen

OSLO, March 29 (Reuters) – Access to capital for cash-hungry Norwegian offshore shipowners is predicted to tighten additional as decrease exercise and falling earnings proceed in 2016, the Norwegian Shipowners’ Association mentioned in its yearly outlook report on Tuesday.

Since mid-2014, the worth of crude has tumbled 66 %, main oil companies to chop investments to protect money and therefore hire fewer drilling rigs, provide vessels, seismic ships and different gear used within the seek for oil and fuel.

In 2016, solely 15 % of the companies questioned by the affiliation think about the entry to capital pretty much as good, in comparison with 25 % of questioned companies final 12 months and 50 % in 2014.

One out of each third firm now considers the entry to capital to be very tight, towards lower than 10 % final 12 months, the report mentioned.

“Expectations are negative with regards to developments in the capital markets throughout 2016,” mentioned the report.

“Hardly any shipowner expects improvements, and 55 percent of them expects an additional weakening,” the report mentioned, including that offshore service companies had been particularly pessimistic.

Earlier this month, Nordic Trustee, a key Norwegian market facilitator advised Reuters that debt restructuring efforts amongst Norwegian oil service companies had risen sharply.

“We expect that about half of the Norwegian rig fleet and every sixth Norwegian-controlled offshore vessel will not be employed as we approach summer this year. This is a serious situation”, the CEO of the Norwegian Shipowners’ Association, Sturla Henriksen, advised Reuters.

He added that trade consolidation was prone to occur quickly. “We are going to see a restructuring in ownership because we cannot expect that every shipowner will be capable to contribute with new capital”, he mentioned.

Several of Norway’s greatest offshore provide vessel homeowners have these days mentioned {that a} remaining glut of vessels and weak markets will set off restructurings on the trade.

Tuesday’s report additionally mentioned that Norwegian offshore service shipowners anticipate revenues to fall by eight % in 2016 in comparison with 2015, the primary time in 13 years shipowners anticipate a declining turnover.

Some 111 offshore provide vessels and 23 oil rigs are anticipated to be taken out of operation by the top of June, a rise of 10 vessels and seven rigs respectively in contrast with February, the report mentioned. (Editing by Gwladys Fouche)

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