The Viking Supply Ships-Sea1 Offshore ship management tie-up could be tipping a merger between the two Christen Sveaas companies, analysts say.
On Tuesday, Viking Supply Ships announced it was placing its six anchor-handling tug supply vessels in the management of Sea1, a move the companies said would result in cost optimisation.
“But this move also simplifies a potential merger of the two companies at a later stage,” said Pareto Securities analyst Bard Rosef, who added that the move should not come as a surprise.
He said the two companies were slated to compete against each other in the North Sea spot market and Australia, despite the common ownership.
Through his Kistefos investment company, Sveaas owns 80.1% of Viking Supply Ships and snagged a 51.8% stake in Sea1 earlier this year, after wresting the former Siem Offshore from its founder, Kristian Siem.
Rosef argued Sea1 shares were “increasingly attractive” as they have fallen year-to-date, have lost their valuation to their peers and are expected to start paying dividends in the second half.
In midday trading on Wednesday, Sea1 shares were up NOK 1.85 ($0.17) to NOK 28.50.
Sea1 shares were among the hardest hit in Monday’s global stock sell-off, as offshore vessel owners suffered some of the worst dips, falling as much as 8.7% to NOK 26.20.
But shares jumped early on Wednesday and continued climbing.
Before Sveaas’ takeover, Siem Offshore had 26 vessels.
As part of the agreement, Sveaas swapped nine ships for Siem’s leading 35% stake, leaving it with 17 vessels either owned or operated, plus 12 under management.
The additional six Viking Supply Ships vessels bring that total to 18.
