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    Island Offshore planning to put more vessels into layup

    Company News // December 2, 2016

    Island Offshore says it currently has a total of 11 vessels in layup, of which five are cold stacked, but plans to put more into layup over the winter.

    "As both spot and term day rates have remained unsustainable, Island Offshore has resolved to increase the number of vessels in layup during the winter months," it said in a statement issued to coincide with its third quarter results.

    "Accordingly, five vessels in layup will remain stacked through the winter, pending commencement of firm contract work or resolution of tender processes and an additional vessel will go into winter layup due to planned drydocking and re-class programmes. Two additional vessels are expected to complete their current work programme by early December and will go into layup upon completion of that work. The number of vessels in winter lay-up may therefore increase from five to nine in the coming months, leaving a total of 14 vessels in long or short-term lay-up," said the company. This constitutes 50 per cent of Island Offshore's fleet.

    The company said cost reductions implemented in 2015 and 2016 are making a significant contribution to earnings, especially vessel layups and associated crew reductions, but also salary reductions, reduced administration expenses and maintenance efficiency measures.

    "Management's focus remains on developing market opportunities for vessels exposed to the market or contract renewal, combined with cost optimizing vessel operations," said the company.

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