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    Strong contract coverage cushions Oceanteam

    News // November 13, 2015

    Oceanteam Shipping says it anticipates that a stong order backlog and working relationships with strong partners will allow the company to navigate through what it described as the "volatile and challenging oil and gas market."

    The company says the effects of the downturn have been miitgated by diversification, working in joint ventures, and a clear focus on reducing operational costs.

    The company has a large CSV, Tampamachoco 1, due for delivery at the end of 2016, which is contracted for a long-term contract in Mexico.

    "The prolonged downturn in oil and gas market is affecting our asset values negatively, but the company is now reaping the benefits of a modern fleet with strong contract coverage into 2017 and beyond," it said.

    The company has secured a new flexible loan facility meeting its future requirements and recently acquired two FSVs with guaranteed buy back option from the builder. Delivery is due in early 2016. The group has also received a LOI for cable transport, storage and offshore cable handling for projects in 2016.

    "The long-term fundamentals of different markets and regions remain strong, but short and medium remain uncertain," said Oceanteam. It cited the growing importance to the company of the offshore renewables market in 2016 and 2017, supported by an increased number of RFQs for engineering services combined with equipment.

    The company said it has secured backlog up to 2017/2018 for its main CSV assets and has maintained a good level of utilization of its assets and engineers.

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