Page 17: of Offshore Engineer Magazine (Mar/Apr 2024)

16 18

MARKETS SOVs

Battery energy storage systems feature extensively as do SOVs and CSOVs, building hulls in Romania, Spain and electric drives. Vietnam that are completed and commissioned in Nor- way. The company is also building a vessel through its Fin-

Designers and Builders cantieri Bay Shipbuilding subsidiary in the USA. The most

SOV and CSOV owners have generally sought pricing popular design in the VARD 4 19 platform.

from Norwegian yards (which generally build the hulls Far behind VARD is the Turkish yard Cemre, building in countries including Vietnam, Turkey, Romania, and Havyard and SALT Ship designs, Norway’s Ulstein, Spain’s

Spain) and China. Gondan (SALT Ship Design and Kongsberg designs), and

According to CSOV owner Integrated Wind Solutions, China’s CMHI building Kongsberg designs.

the contracting price of a Norwegian newbuilding has ris- Ten yards account for the remaining vessels.

en from €60 million to €68 million between Q1-2021 and

Q1-2024. With a hull built in Spain or Romania, the cost Te Future Looks (Generally) Bright rose from €52 million (2021) to €66 million (2024). In The market fundamentals, refected by an increasing the same period, a Chinese built CSOV for the European number of turbines being installed and operational cou- market would attract a yard price of €44 million (2021) pled with a likely reduction of Tier 2/3 vessels, support a and €61 million (2024). Based on this data, we note that growth in the vessel supply-side.

the premium for a Norwegian built vessel fell from around Whereas, SOVs are generally built against long-term 25% in early 2021 to approximately 12% today. charter and therefore have a certain amount of fnancial

The biggest new building premium is found in the USA, security, CSOVs are more exposed to redeployment risk for a variety of reasons, where the three tier one SOVs are and there remains a concern that overbuilding of a com- being built for €87-168 million. moditized vessel may result in future oversupply as seen in

VARD is a leader in the design and construction of the oil and gas OSV space in the 2008-2014 period.

Source: Intelatus Global Partners

MARCH/APRIL 2024 OFFSHORE ENGINEER 17