OSLO, March 1 (Reuters) – A glut of offshore provide vessels and falling demand from oil corporations will set off a restructuring of the still-fragmented trade, two of the most important house owners of the specialty ships instructed Reuters on Tuesday.

With crude costs down greater than 70 p.c since mid-2014, vitality corporations have sharply minimize their exploration spending, leaving a rising variety of vessels to be mothballed.

Norwegian provide vessel house owners Farstad Shipping and Havila Shipping each stated they count on to see mergers happen, echoing the sentiment of competitor Solstad Offshore , which stated final week it too expects consolidation.

“What we have pointed to for a long time is that the supply side is too big compared to the demand side. We have also pointed out that there are too many owners in this market and therefore it is all set for consolidation,” Farstad Chief Executive Officer Karl-Johan Bakken stated.

Havila, which is present process a monetary restructuring, stated the trade was dealing with its greatest crises up to now.

“It’s in such environments things seem to happen. As the market currently is, we are open to most suggestions,” Chief Executive Officer Njaal Saevik stated.

Supply vessel house owners, depending on oil corporations’ drilling rig exercise, have seen each day hires fall under working prices though round 100 vessels have to this point been faraway from the North Sea.

“The past six months we have seen the activity level come down. Whether we’re touching the bottom remains to be seen,” Farstad’s Bakken stated.

For anchor dealing with vessels, which assist transfer drilling rigs to new areas and assist place them securely, there had been some constructive information recently, each corporations stated.

Havila Shipping stated it hoped to current an answer to its monetary restructuring quickly.

Farstad Shipping introduced late on Monday stated it had employed Danske Bank, DNB Markets and Nordea Markets as monetary advisers to be ready to take actions if amendments to its present capital construction change into needed.

Both corporations additionally reported wider losses within the fourth quarter in comparison with the identical interval a yr earlier.

By 1340 GMT, Havila’s shares traded 6 p.c decrease for the day and are down 95 p.c within the final two years. Farstad was down 2.1 p.c for the day and down 89 p.c within the final 24 months. (Reporting by Henrik Stolen, enhancing by Terje Solsvik)

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