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Investors scour market for tonnage, pushing OSV sales past US$1.56Bn
Two major en bloc purchases by Tidewater and Britoil have dominated a lively 2023 S&P market, where opportunistic buyers can quickly turn into opportunistic sellers
S&P activity year-to-date (YTD) is more than double the same period in 2021, as OSV owners scramble to wheel and deal for all available high-spec tonnage to meet increasing demand for their services from charterers.
Data as of 1 October reported by UK-based VesselsValue, which provides ship valuations intelligence, shows S&P transactions totalled US$1.56Bn YTD, a rise of almost 14% over vessel sales of US$1.37Bn in 2022, and 124% over 2021 sales of US$694M. VesselsValue does not include transactions covering fast supply vessels or platform supply vessels (PSV) of 300 dwt or smaller in the data.
OSV demolition sales have fallen precipitously the last three years, with just 15 (valued at US$11M) sold for scrap in 2023, down from 28 (US$28M) in 2022 and 57 (US$40M) in 2021.
Large en bloc sales
2023 has been shaped by two large en bloc sales, including Tidewater’s US$577M purchase of Solstad Offshore’s 37 PSVs and now the long-anticipated finalisation of the sale of Vroon’s offshore fleet, which was completed in September, with vessels gobbled up by three different owners.
“[The sale is] the beginning of a new chapter for Vroon”
Vroon chief executive, Martijn Schouten, says the sale is “the beginning of a new chapter for Vroon”, which now has a specialised fleet of 65 deepsea transport vessels, emergency response and rescue vessels, and 1,400 employees.
The biggest winner among the three buyers was Singapore-based Britoil Offshore Services, which landed 30 Vroon OSVs in the sale, including large- and medium-sized PSVs (about 4,200-3,300 dwt) and small- and medium-sized anchor-handling tug supply vessels (about 5,150 to 6,500 bhp). Covered in the acquisition were Vroon’s supporting offices in Singapore and Genoa. Not included in the transaction was Vroon’s office in Den Helder, the Netherlands, which will be closed in 2024.
Norway’s Golden Energy Offshore Services (GEOS) spent US$94M to acquire five Vroon vessels, including four PSVs and the multi-purpose commissioning support vessel VOS Sugar, while the Netherlands’ Rederij Groen acquired two vessels.
| Notable offshore support vessel S&P activity | |||
| Buyer | Seller | Price | Assets |
| Tidewater | Solstad | US$577M | 37 platform supply vessels |
| Britoil Offshore Services | Vroon | not reported | 30 PSVs and AHTSs |
| GEOS | Vroon | US$94M | 4 PSVs and VOS Sugar |
| Rederji Groen | Vroon | not reported | 2 OSVs |
| Boskalis | GEOS | US$15.9M | VOS Sugar |
| DOF | lenders | US$27.4M | 3 PSVs |
| Atlantica Shipping | DOF | US$25.1M | 2 PSVs |
| Fletcher Group | Standard Supply | US$9.4M | FS Balmoral |
| Shina Navigation | Global Offshore | not reported | Sarina (ex Makalu) |
| CAMGSA | Delta Logistics | not reported | Delta Commodore |
| Sources: VesselsValue, Seabrokers and Riviera Maritime Media | |||
A seller’s market
A tight OSV market is turning opportunistic buyers into opportunistic sellers. Purchased from Vroon for US$9.4M, VOS Sugar has reportedly been resold by GEOS to Boskalis, according to Seabrokers. The sale, which is expected to close in November, is valued at US$15.9M, making for “substantial cash profit”, said the shipbroker.
And speaking of making a quick profit, in early October DOF flipped two of three PSVs it had acquired just three days earlier.
On 29 September, the Norwegian owner had agreed to acquire Skandi Barra, Skandi Caledonia and Skandi Captain from the lenders for a total price of Nkr270.0M (US$24.7M).
On 2 October, DOF Rederi then sold 2005-built Skandi Barra and 2003-built Skandi Caledonia to a company controlled by Atlantica Shipping for Nkr275.0M (US$25.1M).
“DOF flipped two of three PSVs it had acquired just three days earlier”
All three PSVs are under charter in the North Sea. Skandi Barra will be delivered to the new owners in October 2023 and Skandi Caledonia in November 2023. DOF will continue as technical and commercial manager for the vessels. 2004-built Skandi Captain is on charter in the North Sea until 8 November.
Skandi Caledonia has been awarded a contract in Argentina with estimated start up in Q1 2024 with a major global oil company. The contract has a duration of 150 days plus 60 days options and the estimated EBITDA contribution is above US$25,000/day, excluding mobilisation and demobilisation.
DOF Group chief executive, Mons S Aase, says the sales of the two older PSVs “are in line with our long-term strategy to focus on the integrated subsea services and the short to medium focus on optimising the combination of earnings and vessel values from our PSV fleet.”
The sale is subject to conditions, including approval by the charterers.
According to multiple sources, other PSVs switching hands in the period include the 2008-built, UT 755 LN design FS Balmoral which was sold by Standard Supply for US$9.5M to Fletcher Group, 2013-built Havyard 832 design Makalu renamed Sarina after it was acquired by Shina Navigation from Global Offshore Services, and the well-travelled 2008-built, GPA 640 design Delta Commodore (built by the now defunct Bender Shipbuilding in Alabama) purchased by CAMGSA from Delta Logistics.
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