OSJ Conference: 'oil and gas isn't dead'

Mr Day said he expects "further firming" of asset values for PSVs, and that, as newer and larger PSVs are engaged, the trickle-down effect of that value increase will be felt for mid-sized and small PSV vessels as well as older vessels through to 20 years old. 

Mr Day presented a case study of an 18-year-old vessel that, over the course of six months, saw its projected market value double. With a projected value of around US$3.2M in June 2022, the vessel recently sold for around US$6.4M. 

Mr Day also brought up the subject of the potential for high-profile sales of vessel fleets for at least one of the larger fleets in the sector that did not survive the most recent downturn intact. "The best way to look at asset values going forward is to look at what is going on in the fleet right now," he said.

Mr Day pegged the value of the current group of OSVs widely thought to have potential for near-term sale at approximately US$390M, and said he foresaw no discount on the market value, unlike previous sales linked to so-called ’market rationalisation’ in leaner years with less certainty ahead than the market currently expects.

Discussing the potential sale of Vroon’s fleet but demurring from more than passing mention of DOF’s potential sale of vessels, Mr Day said, "Large owners, particularly from the Middle East, may make a power play."

"DOF is a slightly complicated situation, and I don’t see those vessels coming up for sale," he said.

Sign up for Riviera’s series of technical and operational webinars and conferences in 2023:

• Register to attend by visiting our events page.
• Watch recordings from all of our webinars in the webinar library.