Norwegian shipowner OHT has revealed its frustration that offshore wind tender awards are being delayed.
But the Arne Blystad-backed and Oslo-listed company remains confident that there will be plenty of work from 2024.
OHT said it is remaining “disciplined” when it comes to pricing and selection of tenders.
“In certain situations, this may lead to other contractors securing contracts that the company is tendering for, thus potentially delaying a positive news flow,” the shipowner said.
But OHT believes that with high activity levels expected in the market from 2024 and 2025, there will be enough projects to “fight for”.
Developers will be forced into action
“Whereas we are somewhat frustrated by the delays in contract awards as compared to developers’ previous plans, we are confident that they soon will be forced to conclude to safeguard the overall project development plans,” the company said.
OHT has yet to see final decisions on any of its bids.
“This means that all contract opportunities maintain their full upside potential for the company, and we expect several of these projects to be declared and concluded within reasonable time,” the shipowner said.
OHT, which also owns heavylift ships, continues to maintain that it has timed its entry into the sector just right, with tonnage supply tightness expected for several years.
Merger progressing
The company is in the process of being bought by Kristian Siem-backed oil and gas contractor and shipowner Subsea 7, which will merge OHT with its renewables division to create Seaway 7.
Subsea 7 will own 72% and OHT 28% of the new entity. A shareholder vote is planned for September.
OHT will take delivery of its new 48,000-dwt turbine foundation installation ship Alfa Lift from China Merchants Industry Holdings early in 2022.
The turbine installation newbuilding Vind 1 is due from the same yard in 2023.
More newbuildings coming?
OHT said a conditional shipbuilding contract for Vind 2 is subject to contract commitments, for which talks with clients are ongoing.
The company has also completed a basic design for a sister vessel to the Alfa Lift and this will be issued to shipyards when the time is right, the owner said.
“More and more analysts and clients are pointing to the obvious gap in suitable installation vessel capacity versus project requirements,” OHT said.
“Hence, there is clearly a need for building more vessels for the next generation of foundations and turbines.”
For the second quarter, the net loss was $147,000, down from a profit of $6.5m last year, as revenue fell to $17.7m versus $22.5m in 2020.
