Two Norwegian owners have secured long-term deals for platform supply vessels in increasingly promising markets.
Oslo-listed Standard Supply’s 5,100-dwt Standard Supplier (built 2007) has been fixed out to a major oil company in the North Sea for one year at $23,000 per day.
Spot rates in the region are already at least £20,000 ($25,000) per day.
The contract includes an additional six months of options at $31,000 per day, showing how charterers are pricing in increases in tight markets.
“As long-term contracts are approaching unprecedented highs, our focus remains on identifying attractive deals not only in the North Sea but also on an international scale, with particularly Brazil and West Africa showing signs of being completely sold out of capacity,” said Standard Supply chairman Martin Nes.
“Our present fleet coverage extends through to November 2023 with an average daily rate of $17,000 per day.”
The deal will boost its dividend distribution capacity by NOK 0.30 per share over the coming year, Nes said.
The fixture also “exemplifies the robustness of the current charter market, with current earnings resulting in paybacks in less than three years”.
“Our larger PSV vessels are trading at an implied value of around $16m, while this contract is projected to produce roughly $5.5m of Ebitda,” he added.
Norwegian owner JJ Ugland’s Ugland Supplier subsidiary has clinched a charter extension from domestic oil giant Equinor for its 5,500-dwt PSV Juanita (built 2014).
The vessel will be operating in the North Sea and the fixed period is for a minimum of three years, with two 12-month options.
The current deal runs out this month. No rate has been reported.
“We are very pleased with this contract and are looking forward to continue delivery quality of services to Equinor,” JJ Ugland said.
The Juanita has been under contact to Equinor since delivery from Kleven Yard.
Fortunes on the rise
In May, Standard Supply achieved time charter equivalent earnings of $14,900 per day and utilisation of 95%.
Norwegian shipbroker Seabrokers said the arrival of better weather in north-west Europe has brought improved fortunes for vessel owners in the North Sea spot market.
For medium and large PSVs, average spot fixture rates in May were the highest monthly average for the year so far.
For large PSVs with a deck area of 900 square metres and above, the figure topped £20,000 for the first time since June last year.
Within the anchor-handling tug supply sector, average rates for the year to date are higher than at this stage last year, north of £40,000 for large vessels.
In the longer term, Seabrokers notes concerns are growing regarding rig availability for future drilling requirements, with a long list of floating platforms departing for other regions.
“This may impact the ability of exploration and production companies to proceed with any outstanding work scopes according to schedule if there are limitations on rig availability,” it said.
