Uncertain outlook for subsea vessel owners as counter-party risks growNews // October 6, 2015
Broker Fearnley Offshore Supply AS (FOSAS) says vessel owners with exposure to the subsea market are subject to increased counter-party risks with every passing day.
"Many vessels are chartered by smaller service companies that are coming under pressure because of dropping backlogs. Subsea activity is expected down 30 per cent from 2015 to 2016. In addition market analysts are concerned about the fact that few SURF prospects are planned for 2017 and 2018," said FOSAS.
"If subsea activity does not pick up before 2019, subsea contractors will need to undertake drastic cost cuts to avoid going belly-up."
As FOSAS noted, the latest company to fall into administration is Goldman Sachs-backed Ceona. As consequence, Polar Onyx has returned to GC Rieber Shipping and Ceona Amazon is for sale.