New entrants to offshore shipping are wise to team up with established owners and operators, according to shipbroker Robert Day.
Greek owners in particular have been diversifying from mainstream cargo shipping into a sector characterised by good demand, an ageing fleet and a minuscule orderbook.
In September, Middle East specialist Atlantic Navigation announced the sale of 20 anchor-handling tug supply units, utility vessels and platform supply vessels for $183m to MAG Offshore.
This month, the owners of MAG unveiled themselves as John Dragnis’ Goldenport Group, EnTrust Global’s Maas Capital and Middle East shipowner Allianz Marine Services.
Day, managing director of M3 Marine (Offshore Brokers) UK, told TradeWinds: “We are seeing an increasing number of non-traditional offshore investors entering the market and expanding into this sector.
“Teaming up with an already established offshore vessel and marine logistics provider should allow MAG Offshore to hit the ground running and minimise costly mistakes.”
Greek shipowner Evangelos Marinakis has also entered the PSV sector in a series of secondhand and newbuilding deals, using Borealis Maritime’s Aurora Offshore to manage some of the ships.
This has been a busy period too for Middle East and Asian mergers and acquisitions in the offshore sector.
The activity was kicked off last November by Abu Dhabi’s AD Ports buying 10 offshore support ships from Riverstone-backed E-NAV Offshore in Mexico for $200m.
“Objectively, this was a great deal for both parties,” Day said.
“From the buyer’s perspective, they acquired a modern and diverse fleet at an attractive price during a time of rapidly increasing asset values and a shrinking pool of available vessels. They also gained access to established contracts with top-tier companies both within and outside the United Arab Emirates.”
E-NAV managed to sell 10 vessels for the same price it had paid for 33 ships from the indebted Pacific Radiance stable via Singaporean lender DBS, Day said.
Riverstone always intended E-NAV as an asset play and this month it divested the last of the fleet.
In August, Dubai-based Astro Offshore sold 80% of its shares to India’s Adani Ports & Special Economic Zone (APSEZ) for $185m.
Astro, founded in 2009 by Mark Humphreys, has experienced the market highs of 2010 to 2014 and the lows of the subsequent downturn.
“Remarkably, it managed to stay debt-free during the downturn, allowing it to expand operations and strategically grow its fleet by acquiring 11 offshore support vessels since 2017, all at bargain prices,” Day said.
The ships were secured on long-term contracts with top-tier clients in the Middle East.
Day called this a “smart” acquisition by APSEZ, immediately strengthening its position in the Middle East, providing access to a portfolio of top clients in the region and advancing the group’s goal of becoming one of the world’s largest marine operators.
The deal gives Astro an enterprise value of $235m, providing it with the means to grow aggressively and capitalise on the strong offshore energy market.
Day believes there may now be newbuilding orders placed for the Middle East market, backed by long-term charters.
But he said: “Speculative newbuild orders are unlikely at this time.”
