Island Offshore, a Norwegian provider of offshore vessels for the oil and gas industry, has reached an agreement with a shipyard to defer its new building delivery program.
According to the company’s 2Q statement, Vard Brevik, the shipyard building its four new vessels, has agreed to delay deliveries of three vessels: Island Discoverer, Island Diligence platforms supply vessels and Island Victory subsea installation vessel. The Island Defender, a platform supplier, will be delivered in January 2016 as planned.
Island Offshore, which has a fleet of 29 vessels in operation, said that the agreement to defer the new building program “is important to mitigate the negative implications of a weaker market and will improve the short term cash flow for the group.”
“As a result of the continued weak market conditions, additional measures that may strengthen the financial position and working capital of the Group are under assessment, and are being discussed with relevant parties,” Island Offshore said without going into details.
In its quarterly statement, Island offshore said that the PSV market continued to be depressed across regions „and price competition is fierce for both spot and term work. We expect the weak PSV market to continue.“
The company had a brighter take on its Anchor Handling vessels as it said it expected the AHTS vessels to generate satisfactory earnings in Q3 following an award of subsea construction work.
Island Offshore further said it wouldn’t rule out vessel conversions or modifications for alternative work if long term charter commitment opportunities arise.
Offshore Energy Today Staff