Consolidation is the way forward for global expansion

E-NAV Offshore founder and chief strategy officer Diego Aguilar said the OSV industry is still segmented and regional, providing opportunities for consolidation.

He said businesses should consider mergers and acquisitions to become global fleet owners in a market where there are few opportunities for fleet expansion.

“There will be a lot of consolidation and there is a lot to be done to be bigger global companies. There will be more activity,” he said.

Mr Aguilar said investors and private equity groups are becoming interested in the OSV sector again after the sector has come out of a multi-year downturn. “Banks are starting to relook at the sector,” he said. But there is little appetite for ordering newbuild vessels, so “buying vessels and fleets will be the only options going forward.”

He was interviewed during Riviera Maritime Media’s Offshore Support Journal Conference, Asia in Singapore in September 2023.

There are several key factors driving the current upswing in demand for OSVs, including rising investment in oil and gas exploration, developments and production and a shortage of available ships.