DOF Group’s $1.1bn takeover of Maersk Supply Service will lift the Norwegian shipowner to another level, one analyst believes.
Under the deal, 22 high-quality anchor-handling tug supply (AHTS) and subsea ships will become part of DOF’s fleet.
Fearnley Offshore Supply analyst Jesper Skjong told TradeWinds that although certain vessels are being retained, the Olso-listed owner will still get its hands on ships that are “a great fit for the company and its fleet today”.
The Maersk Supply website lists it as operating 32 AHTS ships, subsea units and platform supply vessels.
Skjong said DOF has been successful in building its charter backlog.
“And with its current fleet utilised to a high degree, the takeover will allow the company to continue to take on even more work in the growing market as the majority of the Maersk Supply Service fleet roll off existing contracts by 2026,” he said.
“Moreover, with an already market-leading position in several respects today, DOF’s fleet post-Maersk Supply Service acquisition will cement its place as a global leader among shipowners, especially in the high-capacity segments such as AHTS and large construction support vessels (CSVs).”
Skjong believes DOF’s additional market share in CSVs will take its transition from shipowner to contractor to “another level”.
It will now rank “firmly on top” within the second tier of engineering, procurement and construction groups, he argued.
As such, he expects strong revenue growth in the project market, including remotely operated vehicle, autonomous underwater vehicle and engineering services, “as opposed to only being an asset-driven player”.
Two birds, one stone
With tonnage tight, opportunities to add to its vessel roster will be limited in the short term, Skjong said, which is why acquiring most of the younger Maersk Supply fleet is so attractive.
“DOF is able to kill two birds with one stone as it both adds capacity and lowers its average fleet age, getting a leg-up on its largest competitors,” he added.
DOF will pay for the deal in cash and new shares.
It will be one of the largest oil services companies listed on the Oslo Stock Exchange, with a market cap of about $2.3bn as of close on 28 June.
The combined company will have more than 5,400 employees and 78 modern offshore/subsea vessels, 65 of which are owned, and engineering capacity to service the offshore and subsea market.
