Oslo-listed Eidesvik Offshore has produced its best financial figures for nearly eight years thanks to its long-term contract coverage.
The Norwegian platform supply vessel owner said net profit in the third quarter was NOK 39.6m ($3.6m), versus NOK 51m in the same period of 2023.
Revenue rose to NOK 207.1m from NOK 204.4m year on year.
All its ships are on long-term contracts and utilisation was very close to 100% in the three-month period.
Chief executive Helga Cotgrove said the result “reflects the continued strong efforts of the organisation”.
“With the development in the North Sea PSV market over the summer and into the autumn this again confirms the value of term contracts versus the spot market,” she added.
Cotgrove believes that despite the “sluggish” market, the fundamentals in the offshore support vessel market are unchanged.
“With all our vessels on long-term contracts we are not materially impacted by short-term fluctuations,” the CEO said.
Broker Fearnley Offshore Supply said that after a tough summer, September offered a bright spot with average reported day rates of about NOK 250,000.
Shortlived spike
“Alas, this was shortlived as October experienced a steady fall down to below NOK 120,000 per day on average and with the highest rate on par with the average,” the company said.
Vessels have been sitting idle, struggling to find new jobs after wrapping up their previous projects, Fearnley Offshore explained.
“In response to the rate downturn, many vessels are beginning to move to other regions, hoping for better day rates or at least higher utilisation to make up for the difference,” the broker added.
“The market is still volatile, which is why traditional owners are holding off on large-scale newbuilds, even though overall market sentiment remains positive,” the Norwegian shop concluded.
Eidesvik Offshore has 10 owned ships and one vessel under construction.
The company also manages three third-party ships.
Cotgrove said: “We continue to explore the market for growth opportunities, remaining focused on ensuring that any investments need to be accretive to our shareholders.”
