Fearnley Offshore Supply expects an offshore support vessel sector with increasing charter and utilisation rates in 2024.
“As we head into a new year, we see significant opportunities across the overall OSV sector,” analyst Jesper Skjong said.
Especially within the large platform supply vessel and subsea construction vessel segments, there will be opportunities, he told TradeWinds.
The Norwegian broker also forecast rising secondhand transaction values.
“We are already seeing this translated in recent term fixtures and offer prices on existing tonnage, and market participants can agree that the lack of fleet renewal in the coming two years will more than likely be a significant driver for further improving market conditions from the shipowner’s perspective,” Skjong said in a report.
Fearnleys said the overall OSV segments have improved across the board, as certain segments move towards rate levels at which newbuilds can be seriously considered.
“However, even with rising demand and the ever-aging fleet, the cost of capital, construction cost and overall investor uncertainty towards oil and gas does not indicate a massive newbuilding wave coming,” Skjong said.
“Leading yards offer no easy fix, as payment terms require substantial upfront equity and few owners have reached the stage of the cycle where substantial retained earnings can be deployed.”
Clarksons Research last week projected that its offshore index, which tracks day rates for rigs, offshore support vessels and subsea units, will reach all-time highs in 2024.
Rig, OSV and subsea markets remain strong, with rates now higher than 2014 levels in most sectors and regions, it said.
Clarksons’ OSV rate index increased to 180 points at the end of 2023, a 15-year high.
