Big deals: DOF Group’s billion-dollar offer for Maersk leads M&A charge

Another big deal

Another acquisition was swung in the quarter by Singapore-based Cyan Renewables for ASX-listed MMA Offshore. The private-equity-backed offshore energy vessel owner had to sweeten its offer to Aus$1.07Bn (US$725.3M) to gain the approval of the majority of ASX-listed MMA Offshore shareholders. Cyan intends to retain MMA Offshore’s workforce and to utilise and grow the company’s expertise, assets and operating model to expand further into offshore wind support services while continuing to provide a comprehensive suite of marine and subsea services to its existing clients in the offshore energy and wider maritime industries.

MMA Offshore controls a fleet of 20 vessels, includes AHTs, AHTSs, PSVs and multi-purpose support vessels. In its half-year results (reported as of 31 December 2023) for financial year 2024, MMA Offshore reported an average fleet utilisation of 83%.

This is the second acquisition this year by the fast-charging Cyan Renewables. In January, it acquired a 75% interest in UK-based OSV owner Sentinel Marine, which controls a fleet of 13 multi-role field emergency response and rescue vessels, with an average age of about 7.6 years.

Other M&A deals

Several smaller M&A deals were struck in Q2 2024, creating some consolidation among Norwegian and Dutch vessel owners. Havila Group closed on Volstad Maritime, changing its name to Havila Subsea & Renewables. Subsea services specialist N-Sea acquired fellow Dutch competitor Geo Plus, and its fleet of six survey boats. And finally, wastewater treatment specialist Soiltech will merge with Oceanteam to form the public limited liability company Soiltec ASA. No shipping assets are involved in the merger.

Norwegians Christian Sveaas and Kristian Siem finished their vessels-for-shares swap. Sveaas-led Sea1 Offshore sold nine OSVs to Mr Siem in exchange for his 35.7% shareholding and US$117.5M in existing debt assumption.

“There is a strong belief in a longer-term cycle”

Sea1 Offshore was formerly Siem Offshore before changing its name in May. Following the sale, Mr Siem will move his nine vessels into Siem Sustainable Energy, his new company.

After the transaction, Sea1 owns and operates a fleet of 17 vessels. But the company further manages 12 units, including the nine vessels taken over by Mr Siem.

One of the new players in the market, Pelagic Partners, has built on its investment in Golden Energy Offshore Services (GEOS), with the addition of two three-year-old LNG dual-fuel battery-hybrid PSVs to its portfolio. Pelagic Partners has joined with Borealis Maritime and Aurora Offshore in owning and managing two 2021-built sister ships, Aurora Coey (ex Viking Coey) and Aurora Cooper (ex Viking Cooper). Both PSVs are working in the North Sea market – Aurora Coey offshore Scotland with Harbour Energy and Aurora Cooper in Norway.

North Sea day rates

Day rates for AHTS vessels in the North Sea gradually increased in May and June. Fearnley reported day rates in May were about 15 to 18% lower than the same time last year, but still represented the second-best month in Norway so far this year, and the third best in the UK.

Average day rates in Norway ended the month with an average of just over Nrk600,000, while “the UK market was slightly disappointing with an average of £35,000 per day”, said the ship broker.

“The market saw several fixtures around and even above the Nrk1 million mark”

In June, average day rates in the UK North Sea increased to about £70,000, while Norwegian charterers paid almost Nrk800,000. “Towards the end of the month the market saw several fixtures around and even above the Nrk1 million mark,” said Fearnley. This was caused by “low availability of vessels due to many ongoing projects – of which several [are] taking longer than anticipated – and a high number of rig moves simultaneously [which] is always a good mix for owners,” explained the broker.

Batteries included

Overall, battery-hybrid PSVs fared well in fixtures during the quarter on the Norwegian continental shelf (NCS). Among those are two Vard 1 07 design diesel-electric-battery PSVs owned by Tidewater.

The two sister PSVs in question, Sygna Tide and Sun Tide, have clear deck areas of 1,140 m2, with propulsion power supplied by three Rolls-Royce Marine 2,460-kW C25:33L8ACD diesel gensets, supplemented by 500 kWh of battery capacity.

Equinor extended both PSVs by 12 months, with Sun Tide firmly fixed until July 2025 and Sygna Tide until September 2025. Both vessels have been working with Equinor, and its predecessor, Statoil, since they were delivered in 2014, according to Seabrokers.

Both sister vessels were acquired by Tidewater in its US$577M, 37-vessel purchase from Solstad Offshore. One result of that massive en bloc purchase was to make Tidewater the owner of the world’s largest fleet of battery-hybrid PSVs.

And speaking of the NCS and battery-hybrid vessels, Eidesvik Offshore’s PSV Viking Lady was extended in Q1 2024 by Aker BP until February 2026, while the company’s shipmanagement agreement with Deme for the subsea support vessel Viking Neptun was upped for three more years.

Eidesvik Offshore chief executive, Gitte Gard, said her company reported its “strongest Q1 result in seven years.” The Norwegian owner had fleet utilisation of 96% for Q1 2024, up from 81% for the same period last year. Quarterly revenue and EBITDA were Nrk183.4M (US$17.0M) and Nrk67.4M (US$6.3M), up from Nrk133.5M (US$12.4M) and Nrk27.8M (US$2.6M), respectively, from the same period in 2023. The EBITDA margin was 37%, up from 21% in Q1 2023. How did Eidesvik do it? Ms Gard said the company “capitalised on thriving markets across all its operating segments.” All of Eidesvik’s vessels are on long-term contracts, and its contract backlog of Nrk2,840.0 (US$246.5M) is at its highest level in nine years.