OSV orders missing from shipbuilder’s strong H1 results

While conditions in the offshore oil and gas sector are slowly improving, there is still a substantial oversupply of OSVs. Fincantieri’s offshore and specialised business unit signed a single contract to construct a cruise expedition vessel, amounting to €57M (US$63M) or less than 1% of the shipbuilding group’s total order intake by value. As a result, the offshore and specialised vessel business lost €52M (US$58M) in H1 2019.

Overall, Fincantieri had a strong first half, with revenues up 12% at €2.9Bn (US$3.2Bn), increasing its firm shipbuilding order backlog to 98 vessels valued at €29.5Bn (US$32.7Bn) for H1 2019, up 34% year-on-year as compared with H1 2018. Contracts for 22 offshore and specialised vessels account for €1.6Bn (US$1.8Bn) of the backlog, with deliveries extending until 2023.

During H1 2019, Fincantieri yards delivered three offshore subsea construction vessels (OSCVs), two for Topaz Energy and Marine from Norway’s Vard Brattvaag and one for DOFCON Navegacao from Brazil’s Vard Promar.

DOFCON Navegacao, a 50-50 joint venture formed between DOF Subsea and TechnipFMC, took delivery of Skandi Olinda which commenced an 8-year charter contract with Petrobras in February. Skandi Olinda has has a 340-tonne vertical lay system tower capacity, a 2,500-tonne underdeck carousel, and two work-class remotely operated vehicles, allowing the vessel to lay flexible pipes in water up to 2,500 m.

In January, Topaz Energy and Marine took delivery of the Vard 3 08 design OSCVs Topaz Tangaroa and Topaz Tiamat. Built to DNV GL class, each diesel-electric vessel has an overall length of 98.1 m, beam of 20 m, depth of 8.5 m and draught of 6 m, with a cargo deck area of 1,000 m². Dynamic positioning class 2 capable, the vessels are outfitted with a MacGregor 120-tonne active heave compensation offshore knuckle jib crane capable of working at depths of 3,000 m.