Offshore vessel shipbroking powerhouse Norway is set to retain its relevance to the market, despite potentially stronger rates in other regions.
“We believe Norway will remain as important as during previous cycles due to our unique offshore ecosystem,” Norwegian shop Fearnley Offshore Supply told TradeWinds.
The brokerage points to the plethora of Norwegian equipment manufacturers, designers, shipyards, offshore support vessel owners, financial institutions and brokers playing a key role in the global market.
Norwegian owners still control a considerable portion of the high-specification OSV fleet and the west coast is still regarded as a leading shipbuilding region, the company said.
“And Oslo can provide access to high-quality brokers and financial institutions, cementing Norway as a key contributor to the global market,” the Oslo shop added.
But this does not mean that owners will keep vessels in the North Sea when better returns are available elsewhere.
“We see a key trend of owners seeking to maximise financial returns after the longest downturn in the history of the sector, leading to owners having a more pragmatic approach to where assets will be mobilised based on highest earning potential,” Fearnley said.
“Subsequently, with the North Sea today lagging [behind other] comparable regions in terms of rates, we expect to see further vessel migration in the short term towards high-activity regions such as West Africa and South America,” the broker added.
Fearnley explained that the domestic market was hit hard in the slump. But it showed resilience, with multiple players shifting towards renewables and developing into global market leaders, it argued.
Innovation in a new sector
“This includes Norwegian designers and yards developing innovative purpose-built offshore wind solutions, traditional OSV owners pivoting towards renewables and Norwegian financial institutions emerging as leaders in terms of offshore wind financing.
“As traditional owners now report strong earnings and asset valuations keep accelerating, we definitely see Norwegian owners playing an important role in the current cycle,” the broker added.
It said this was exemplified by Oslo-listed DOF Group’s re-emergence from bankruptcy and reporting its strongest quarter in history last month, due to its global reach and multi-segment focus.
