Norway’s Standard Supply, majority owned by Øystein Stray Spetalen’s investment vehicle SD Standard ETC, has expanded its fleet with the acquisition of two secondhand platform supply vessels.
The first PSV, renamed Standard Defender came with a price tag of NOK204m ($20.7m).
Standard Supply has also purchased the 2012-built Highland Duke from Tidewater for around $5m. The PSV, which has been laid up in the UK, will be reactivated and dry-docked at a cost estimated at $2m, and renamed Standard Duke.
Following the acquisitions, the Standard Supply fleet will consist of nine PSVs. Five of these are part of the Northern Supply fleet, where the company owns 51%. Fletcher Shipping is acting as commercial and technical manager for the vessels.
Standard Supply recently raised NOK150m ($16m) through a private placement to finance further growth within the offshore support vessel segment. The company’s Euronext Growth listing could take place on or about July 22. Standard ETC has also arranged for a $20m revolving credit facility to support Standard Supply’s fleet expansion.
“We continue to look for growth opportunities and believe these acquisitions represent attractive entry points considering strong underlying earnings and approximately 65% and 50% discount to replacement cost, respectively. Providing financial flexibility will allow Standard Supply to lever its expansion opportunities into this upturn cycle for oil service vessels,” said Martin Nes, chairman of Standard ETC.
