AMSC believes in a strong offshore energy market going forward.
The Oslo-listed maritime investment company participated with NOK 122m ($11m) in Solstad Maritime’s private placement in May.
“We are pleased to have capitalised on the opportunity to grow our exposure to Solstad Maritime having acquired and exercised subscription rights in order to cement our fully diluted shareholding at 19.4%,” chief executive Pal Lothe Magnussen said in the second-quarter report.
Solstad Maritime was formed last year to take over most of the Solstad Offshore fleet in a refinancing led by tycoon Kjell Inge Rokke.
The oil services and renewable energy momentum continues into 2024 with strong market fundamentals in regions and for asset classes which Solstad Maritime is exposed to, the report said.
“The outlook for offshore energy activities continues to look positive with strong global E&P [exploration and production] spending in combination with increased activity within offshore wind,” he added.
According to AMSC, increased investment from oil companies, combined with government-backed offshore wind developments, provides visibility of demand going forward.
Through Solstad Maritime, AMSC is exposed to a fleet of construction service vessels and anchor-handling tug support vessels, which service both the oil and gas and the renewable energy sectors.
“Both markets experience a surge in activity which drives utilisation and rates for the above-mentioned assets. With limited availability of ships and modest order book for new assets, the market outlook remains good,” AMSC said.
The company has also bought investment-grade bank bonds to improve interest income on cash holdings. During the second and third quarters, it purchased bonds for NOK 225m.
“In parallel, we continue to evaluate investment opportunities and effective capital allocation alternatives, with the aim to continue to make attractive quarterly distributions,” Magnussen said.
AMSC declared a dividend of NOK 0.55 per share for the second quarter.
