The Solstad companies’ contract backlog is nearing NOK 7bn ($650m) thanks to huge offshore oil investments in Brazil.
Oslo-listed Solstad Offshore reported a NOK 189m profit for the second quarter, while privately held Solstad Maritime reported a NOK 434m profit.
Solstad Offshore chief executive Lars Peder Solstad said the companies scored wins in the Brazilian market, both signing new charters as state-linked Petrobras spends billions drilling offshore.
“In fact, a total of 15 vessels from Solstad Offshore and Solstad Maritime were engaged in South America during [the second quarter], making it our most active region worldwide,” he said.
For Solstad Offshore, the 92-loa Normand Fortress (built 2006) and 178-loa Normand Maximus (built 2016) offshore construction vessels were deployed to Brazil during the quarter.
Solstad Maritime’s 93-loa CSV Normand Poseidon (built 2009) and two anchor-handling tug supply ships, the 23,664-bhp Normand Sagaris (built 2009) and 20,666-bhp Normand Ferking (built 2007), headed to Brazil.
Brazil plans to spend big on offshore oil and gas in the coming years, domestically and internationally. Petrobras reportedly shopped a $100bn plan to investors earlier this year with the hope of boosting the country to a top crude producer globally.
Elsewhere, vessels received new charters in Asia and Europe and other ships had their fixtures extended.
Together, the two companies have a contract backlog of NOK 6.7bn — Solstad Offshore’s at NOK 2.6bn and Solstad Maritime’s at NOK 4.1bn.
“Another way of measuring the market temperature is by seeing how quickly it is possible to redeploy vessels after they have reached the end of their current contracts,” Solstad said.
“Several vessels concluded long-term contracts during [the second quarter] and all of them have already been redeployed to new assignments. This is a good reflection of the current demand for high-end offshore vessels.”
The two companies recorded 85% utilisation for the quarter, as some ships were sent to the shipyard or were being mobilised to other regions.
Solstad Offshore brought in NOK 746m in revenue, while Solstad Maritime brought in NOK 1.6bn.
The Solstad Offshore-Solstad Maritime split followed the Kjell Inge Rokke-backed $875m refinancing plan hatched late last year.
Solstad Offshore retained its public listing and eight ships, three AHTS vessels and five CSVs, while Solstad Maritime would be private and take over 10 AHTS vessels and 23 CSVs.
The deal left Rokke’s Aker Capital with a 42% stake in Solstad Maritime and a 33% stake in Solstad Offshore, while Solstad Offshore maintains a 27.3% stake in Solstad Maritime.
