Indonesian offshore vessel operator Wintermar is in the process of selling some of the older and idle vessels in its fleet, the company said in its latest financial report.
The company says the move is to raise funds and reduce unnecessary costs for the company.
“There are more sale and purchase transactions recently for second hand OSVs but we expect that many of the laid up vessels will not be reactivated as the low charter rates do not make it viable to spend the amounts required for reactivation. This means the excess supply may be absorbed sooner than expected. In Indonesia, cabotage laws and the low charter rates may also deter new entrants in the OSV market,” Wintermar said in the report.
Wintermar said the company’s current focus is to win a number of long-term tenders which is now bidding for.
The company currently operates a variety of specialised vessels with a fleet size of around 65 vessels.
Wintermar registered a net loss of $7.5m for the first nine months this year, narrowed from a net loss of $9.7m recorded in the same period of last year.