Due to what it described as “a weak PSV market,” offshore vessel owner Viking Supply Ships has decided to lay up the platform supply vessels (PSVs) Sol Viking and Freyja Viking with immediate effect. The decision will reduce the company’s operational costs going forward and will provide a positive impact on the results from second quarter 2016.
Earlier this month, Viking Supply Ships, which specialises in operating ice-class offshore vessels, including PSVs and anchor handlers, said market conditions had continued to negatively affect its earnings and financial position. The company said its liquidity position was ‘strained’ and, in the current market, the group is unable to fulfil existing covenant undertakings in its loan agreements.
“A solution with the group’s lenders is necessary and accordingly, in the fourth quarter of 2015 the group initiated a dialogue with its lenders, with the aim of securing a long-term, stable financing solution by the end of the first quarter of 2016,” said the company in a statement. The group said it remained in “constructive dialogue” with its lenders to find a viable long-term financing solution.