Dubai shipowner P&O Maritime Logistics has warned offshore shipowners need to change the way they do business in a severe sector slump.
The company also argues that digitalisation is a key part of this.
Chief executive Martin Helweg told TradeWinds: "We have taken several swift and decisive actions to adjust our operating model to the new market conditions, which we believe represent structural changes and an extended economic downturn."
P&O Maritime Logistics has worked to cut overall costs and put idle vessels into lay-up to preserve cash.
Helweg said that while these steps are necessary, they will, on their own, not be enough to "survive and thrive in our industry".
"As a company, and more importantly as an industry, we need to rethink our business model, he said. "We strongly believe a large part of this is an industry-wide digital transformation — something which was critical even before the pandemic.
"Technology must be used to drive efficiency in operations. At P&O Maritime Logistics, we have been on the fast track to digitally transform our business for a number of years, which has helped enormously with the recent emergency.
"We will, of course, continue to assess existing business models as the situation develops. Our focus in P&O must be on leading and evolving, driving the accelerated change in the industry."
Bigger company after Topaz deal
P&O Maritime Logistics was formed last year when DP World-owned P&O Maritime took over Dubai offshore support vessel owner Topaz Energy and Marine in a $1.1bn deal.
The group is focusing on offshore, port services and logistics with a fleet of more than 300 vessels, including tugs.
Clarksons lists 10 of its OSVs in lay-up or idle.
TradeWinds has reported that OSV owners worldwide are trying to refinance at least $8bn of debt after being hit by a fall in oil prices and coronavirus restrictions.
Helweg said: "[P&O Maritime Logistics] makes things happen, often in the face of adversity, and this is one such time."
The former Svitzer executive was previously the chief operating officer at P&O Maritime Logistics.
He told TradeWinds: "Our seafarers and all employees are playing an essential role in fighting the global outbreak of Covid-19 in all our locations.
"The work they do, to keep lights on in homes, hospitals, and even economies around the world, never mattered more than it does now. We are extremely proud of their tireless work and dedication in these difficult times."
Production to continue
He said one advantage the company has had over some peers is in its operational focus.
"In terms of our operations, our primary business serves production, which is to a large extent more stable than exploration and development," he said.
"We also operate in regions where oil production cost is relatively low and where countries depend on the revenue the oil industry provides, so we expect production to continue."
Topaz had strong operations and contracts in the Caspian Sea and West Africa.
But Helweg warned: "This does not mean we are immune to the adverse effects of Covid-19. Whilst oil prices are depressed, we do expect markets to remain unstable for a while with severe pressure on both rates and utilisation, so we still need to reduce our cost."
DP World bought Topaz from Oman's Renaissance Services and Standard Chartered Private Equity/Affirma Capital.
Topaz was one of a handful that did not restructure financially during the previous offshore slump dating from 2014.
The fleet includes anchor handling tug supply vessels, heavy deck-cargo units, multipurpose support vessels, platform supply vessels, crew boats and emergency response ships.
In the past year, terminal giant DP has also acquired Unifeeder and P&O Ferries.
