OSV market still highly uncertain one says SolstadCompany News // May 11, 2016
The offshore service vessel industry continues to be characterized by "great uncertainty," says Norwegian vessel owner Solstad Offshore.
In its firest quarter 2016 results statement, the company said that, the low oil price is having a major effect on exploration and development activity. "The market for PSVs and AHTS vessels are characterized by over-capacity, but at times the spot market for AHTS has given acceptable rates," the company said.
"Activity in the CSV market is still somewhat higher, but lower day rates are expected in this segment going forward. It is still possible to make long-term contracts in CSV segment, and the company has signed a 3.5 year contract with Subsea 7 for the CSV Normand Subsea."
Solstsa dsaid that, if the market for offshore vessels remains weak for a longer period, this could lead to further pressure on rate levels.
The group’s fleet has firm contracts of approximately NKr 1.9 billion for the remainder of 2016. Including options, the value of contracts for the remaining three quarters in 2016 is approximately NKr 2.2 billion. Based on the number of charter days, including vessels in lay-up, its contract coverage is 40 per cent and 45 per cent including options.