Vard hawking PSV pair at 15% discount, admits downsizing likely

Vard hawking PSV pair at 15% discount, admits downsizing likely

Singapore: The pair of PSVs under construction at Vard’s Vietnam yard which were cancelled by Germany’s ER Offshore last month are struggling to find buyers amid the low oil price era and the carnage ripping through the offshore support sector. The offshore specialist is now looking at downsizing.

The first ship will deliver in August and Vard is reluctantly having to contemplate becoming an owner if no one buys the ship by then. Despite marketing them aggressively and offering a “significant” discount, a source at the yard told Splash, “The overpopulated PSV sector means no one wants to buy them. We may end up being stuck with these vessels.”

ER Offshore declared two single ship entities bankrupt last month to void taking on the vessels in the current depressed market leaving Vard, part of the Fincanntieri group, in the lurch.

The ships were originally contracted at $40m each and are now being offered at $34m, Splash understands.

The Vard source admitted times were tough for the offshore shipbuilding group. “We have to start looking at how we can reduce our own costs. We will have to look into downsizing,” the source said.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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