Island Offshore: PSV market still oversupplied despite stacking

Island Offshore, a Norwegian offshore vessel supplier, doesn’t expect the market for the platform supply vessels to rebalance soon.

The company said that the PSV market is still characterized by continued oversupply despite the increasing number of stacked vessels.

“We do not see any signs of a restored market balance and expect this market to be poor in the next coming years,” Island Offshore said in its fourth quarter 2015 statement.

The shipowner operating 29 vessels, further said that there is an increasing risk that vessels soon to complete contracts will not be able to secure either extension or renewal of its deals.

“Our strategy remains firm with focus on securing long term commitment with strategically preferred clients. Backlog for the LWI fleet is not satisfactory per February 2016 but there are tender processes to be concluded in Q1 2016 that may add to this backlog,” Island Offshore said.

Island Offshore said that the flow of tenders is generally reduced and very price competitive. The fleet order backlog excluding charterer’s options totals NOK 4,7 billion at 31.12.2015. Contract coverage for 2016 is 49% based on contract days and 76% based on forecasted revenue for 2016.

Offshore Energy Today Staff

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