Norway’s Island Offshore is taking measures to deal with the depressed offshore market, delaying three newbuilds at Vard’s Brevik yard.
The company has four vessels under construction at the yard, three platform supply vessels and a subsea vessel, and has delayed delivery of all but one of the PSVs on order.
In its latest set of quarterly results, Island Offshore said “the agreement to defer the new building program is important to mitigate the negative implications of a weaker marker and will improve the short term cash flow of the group.”
The company also said that it had laid up another vessel during August, the platform supply vessel Island Express, making a total of four vessels now in lay up. Additionally, further lay ups are being considered for vessels completing current term contracts.
Island Offshore posted a first half profit of NOK 30m ($3.6m), compared to NOK 329m ($39.77m) in 2014.