The thoughts of shipowners and brokers are turning to the next big Middle East offshore support vessel takeover after a busy year of transactions.
Merger and acquisition activity jumped back into the spotlight last week, with the revelation that MAG Offshore, the buyer of Middle East specialist Atlantic Navigation for $183m, is backed by Greece’s Goldenport Group, EnTrust Global’s Maas Capital and Middle East shipowner Allianz Marine Services.
Last December, Abu Dhabi’s AD Ports Group kick-started the churn by buying 10 support ships from Riverstone’s E-NAB Offshore in Mexico for $200m.
And in August, Dubai-based Astro Offshore sold 80% of its shares to India’s Adani Ports and Special Economic Zone for $185m.
Greek owner Evangelos Marinakis has also been snapping up secondhand platform supply vessels while ordering new units.
Now Dubai’s Vortex Offshore has come into focus as a takeover target.
Robert Day, M3 Marine (Offshore Brokers) UK managing director, told TradeWinds: “Rumours have been swirling around Vortex Offshore for a few years, and it comes as no surprise.”
The broker said Vortex boasts a modern and diverse fleet, including harbour tugs, anchor-handling tugs and anchor-handling tug supply ships, a heavylift unit and crew boats.
“This fleet could easily provide exposure to the Middle East market or further strengthen an existing owner’s regional fleet,” Day added.
“With Astro and Atlantic now acquired, the number of similarly sized owners has decreased, positioning Vortex as a prime candidate for consolidation or a fleet buyout. Let’s see what 2025 holds,” he said.
West Africa’s appeal
Day believes there are still reasonably priced assets available in the market.
And some of the recent buys, although purchased by Middle Eastern owners, could be used outside the region, he said.
West Africa is a prime example, where PSVs and anchor-handlers are commanding strong long-term charter rates, Day explained.
“However, AHTSs are likely to remain the vessel of choice, as we saw in 2023 and 2024,” he said.
And Day is tipping regional powerhouse Adnoc Logistics & Services to make further purchases, likely medium-size AHTSs, to support their activities within the region.
During the downturn, several private Chinese companies capitalised on the opportunity to acquire vessels from offshore owners forced to sell at rock-bottom prices.
Day called this “a shrewd business move that would prove highly lucrative in the following years”.
Now the global OSV market has rebounded, these ships have begun to re-enter the sale-and-purchase market, attracting the attention of savvy owners in the United Arab Emirates.
Vortex strikes first
Vortex Offshore was the first to act.
In December 2023, it bought the 8,046-bhp AHTS Hua Chuan 806 and then the 10,760-bhp Hai Gong 106 (both built 2009) this year.
“It’s far easier to select the desired vessels from one seller than to navigate the market in search of available units,” Day said.
“Additionally, since Sino Shipping had acquired these vessels at such low prices, their asking prices were in line with general market expectations, unlike other sellers at the time, whose prices had inflated aggressively or who were unwilling to sell any units,” he told TradeWinds.
Day expects the ships to remain in high demand for many years.
Norway’s Fearnley Offshore Supply said that with newbuilding costs increasing dramatically this year due to soaring commodity prices and labour catching up with inflation, the case for secondhand transactions remains favourable in comparison.
“Expected lead times have increased to a similar degree, suggesting that owners, prospective and current alike, will need to tap into the secondhand market to secure assets in the short term,” the Oslo shop said.
Financing remains a key challenge for most owners, the brokerage believes, due to credit remaining tight and transactions requiring substantial equity.
“This might change as the day rates and utilisation keep rising in the long-term, as banks traditionally struggle to let profitable opportunities pass,” Fearnley Offshore added.
Vortex has been contacted for comment.
