Norwegian offshore vessel operator Solstad Farstad is looking to make NOK 700m-800m worth of savings during 2018, following cost reductions of approximately NOK400m ($48m) achieved during 2017.
In February, the plan to merge three Norwegian OSV operators Solstad Offshore, Farstad Shipping and Deep Sea Supply into one company was announced and the merger was formally in place by June 2017. Following the merger, Solstad Farstad has become one of the world’s largest offshore support vessel owners and was targeting annual synergy and cost savings of NOK 450m-600m compared to its 2016 cost level.
“Based on the experiences from the first six months in operation as one company, Solstad Farstad is now increasing the targeted annualized savings to NOK 700m–800m,” the company said in a release.
The savings mainly relate to implementing a new organisation structure onshore, reducing crew expenses through using best practice to customise crew composition, and combining procurement and economy of scale.
