Offshore vessel operator Swire Pacific Offshore (SPO) is looking to stack nearly 40% of its fleet as business conditions in the offshore industry continue to deteriorate.
According to the company, currently it has one vessel cold stacked and two vessels warm stacked, and plans to stack at least 28 vessels of 72 vessels in its fleet by the end of this year. It also plans to sell four vessels.
The company’s charter hire revenue decreased by 22% to HK$920m ($118.7m) in the first half of 2020. During the same period, SPO reported a loss of HK$4.97bn ($642m), compared to a loss of HK$633m ($81.7m) in same period of 2019.
“COVID-19 and reduced oil prices have severely affected the offshore oil and gas industry. Exploration and production companies have cancelled or suspended existing projects and deferred future projects. As a result, there is an oversupply of vessels and day rates will come under pressure. SPO is doing its best to adapt to market conditions and is managing costs prudently,” the company said.
