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    Farstad comments on market

    News // November 12, 2004
    Farstad Shipping in Norway says demand for supply vessels in the North Sea during the third quarter was 5 per cent lower than for the third quarter in 2003, but 5 per cent higher than for the second quarter.

    "A reduction in the number of vessels in the North Sea has resulted in an improvement in the market balance. The average utilization ratio for the quarter was approximately 91 per cent in the North Sea. The average for the first half-year was 86 per cent, and for the third quarter of 2003 it was 89 per cent<" said the company.

    "During the quarter the general level of activity for the fleet in Australia and the Far East has not improved," said Farstad. "The considerable increase in the fleet in the markets outside the North Sea has resulted in a surplus tonnage in these marketsand rates have been under pressure. There are signs indicating a certain increase in activity in these markets, which is needed to absorb the surplus tonnage."

    "In the North Sea the rate level has improved during the fourth quarter and it is expected that this quarter will be commercially the best in 2004. The impact of the rig conflict in the Norwegian sector is over and has affected this picture positively. Astrong increase in the rig activity in the North Sea is expected in 2005. This together with a high level of pipe laying activity is expected to produce higher demand for supply vessels."

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