Norwegian owner Standard Supply has secured one-year employment for its platform supply vessel Standard Supplier. The Oslo-listed company, majority owned by Øystein Stray Spetalen’s investment vehicle SD Standard ETC, has fixed the 2007-built ship to a major oil company in the North Sea at $23,000 per day.
. The Oslo-listed company, majority owned by Øystein Stray Spetalen’s investment vehicle SD Standard ETC, has fixed the 2007-built ship to a major oil company in the North Sea at $23,000 per day.The contract is due to commence on June 1 and includes an additional six months of options at about $31,000 per day.
Standard Supply owns nine PSVs, five of which are part of 51% owned Northern Supply, with plans to further grow its fleet. The company’s present fleet coverage extends through to November 2023 with an average daily rate of $17,000 per day.
“As long-term contracts are approaching unprecedented highs, our focus remains on identifying attractive deals not only in the North Sea but also on an international scale, with particularly Brazil and West Africa showing signs of being completely sold out of capacity”, said Martin Nes, chairman of the board of Standard Supply.
Nes added the new deal exemplified the robustness of the current charter market, with current earnings resulting in paybacks in less than three years. “Our larger PSV vessels are trading at an implied value of around $16m, while this contract is projected to produce roughly $5.5 million of EBITDA,” he said.
