Singapore’s Kim Heng is doubling-down on the offshore sector with the acquisition of a another pair of large anchor-handling tugs (AHTs).
Private equity-backed Bridgewater Offshore, in which Kim Heng has a 51% stake, has acquired the 12,500-bhp Salvanguard (built 2004) and Salvigilant (built 2007).
The offshore vessels were acquired for $4.8m enbloc from the Posh Terasea liquidation. VesselsValue estimates the ships are worth $2.28m and $2.85m, respectively.
Kim Heng said the two vessels will be funded through a combination of internal resources and bank loans. They will be renamed Bridgewater 160 and Bridgewater 161 respectively.
Bridgewater Offshore, which is backed by Phillip Private Equity, previously acquired two Posh Terasea AHTs – Salveritas and Salviceroy – in May this year.
No pricing details were disclosed, although offshore sources did suggest at the time that the vessels were worth in the region of $2.25m each.
Activity has picked up with a number of sales transactions taking place in the last few months
Fearnley Offshore Supply
“The aim of Bridgewater is to invest for the future in cycle positioning so as to take advantage of buying distressed assets at significant bargains with the right value,” Kim Heng said.
“These vessels acquired have to be in good working condition so that they can be deployed quickly to work and anticipated to produce growth for the company.”
These latest acquisitions increase the Bridgewater fleet to four AHTs and a single anchor handling tug supply (AHTS) vessel.
“The expanded fleet puts the company in a stronger position to take advantage of the eventual upturn and helps to achieve better economies of scale,” Kim Heng said.
Industry observers have said previously that the bargain price paid for the ships has put Kim Heng and Bridgewater at an advantage over their offshore peers that built up their fleets at high cost during the peak, which left them with large debts to service that current rates cannot cover.
Acquisitions in this sector have been few and far between, but in April Sino Shipping acquired six 10,760-bhp AHTS vessels in an enbloc deal from US operator Tidewater, according to VesselsValue.
The ships, all built at Keppel Corp-owned shipyards in Singapore and China between 2007 and 2009, achieved an enbloc price of just $9.5m.
However, Fearnley Offshore Supply said in its latest market report that activity in the sale-and-purchase market has "picked up" with a number of sales transactions taking place in the last few months.
“The number would likely have been higher; however, the movement restrictions have made it difficult to inspect and take deliveries,” it said.
The Norwegian broker added that 5,150-bhp AHTS units were “changing hands on a weekly basis” and that there are some “larger fleet sales in the works”.
