Page 21: of Offshore Engineer Magazine (Mar/Apr 2024)

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MARKETS SUBSEA VESSELS ity at the time. as a natural development. Other traditional owners have

As the market crashed in the following years, invest- opted for the rearrangement of existing assets, with high ments in offshore developments all but dried up and the corporate activity in recent weeks. Following the battle for

Tier 1’s orderbooks were brought down with it. Unsur- Solstad Offshore between Aker and Kistefos, Siem Off- prisingly, these companies reduced their controlled feet shore announced the split of assets between the company signifcantly by shedding older and non-core tonnage as founder and remaining shareholders. well as letting charters roll off their engagement without Kristian Siem will exit the company he founded with replacements or renewal. nine vessels in exchange for 35% of the outstanding

What is rather surprising, however, is that the con- shares, which include three AHTS, four PSVs, and two trolled feet of these same companies at the time of writ- subsea construction vessels. Kristian Siem’s Siem Sustain- ing, when their orderbook stands almost at its previous able Energy will become the new owner of the vessels, record, is at its lowest in well over a decade. In fact, what leaving Siem Offshore a feet of 17 vessels. Following we had previously assumed would be the through feet completion of the transaction, Siem Offshore will con- fgure for the Tier 1’s, at 78 controlled vessels during tinue to manage the vessels on behalf of Kristian Siem for 2020, reached a new low at 74 units during as of the end a minimum of one year. of last year. Kistefos, owned by Christen Sveaas, will now be the

Therefore, we see no other alternative than that some- largest owner of Siem Offshore, combined with being the thing has got to give, and in light of the vessel demand major owner of Stockholm-listed Viking Supply Ships, forecast for these assets, we are of the frm belief that the which controls a feet of six AHTS. The rationale for own- major subsea contractors sooner rather than later will ing two OSV operators with separate organizations, in the make some strategic and signifcant investments. We are same city now less, might be challenged in the near term, not alone in that belief by any means, and as a matter of yet we have noted that there are no plans for consolida- fact we have seen several positioning moves on the supply tion as of now. side of the market. Havila Holding also made moves with the full ac-

Firstly, on an otherwise rather ordinary Thursday in quisition of Volstad Maritime, where they have held

March, not one, nor two, but three subsea construction 52.5% of the shares since 2017. The fleet consists of newbuilds were announced all on the same day! five subsea construction vessels and one diving support

Rem Offshore confrmed the placement of a construc- vessel, which is considered high specification and in- tion vessel at Myklebust Verft in Norway. The vessel will clude three 250-tone crane DP-3 units. Havila Holding have a 250-ton crane and methanol power, enabling their is now the controlling shareholder in Havila Shipping frst net zero emissions vessel of this type. with a fleet of 14 vessels, joint owner of Skansi Offshore

With an expected delivery in 2026, we see the announce- with five vessels and full owner of Volstad Maritime ment as the frst major construction vessel newbuild in with five vessels. the current cycle. Furthermore, two SALT-designed light Subsequently, we can say that the puzzle for securing construction vessels were placed by an undisclosed owner high quality steel has started and multiple interesting de- the same day, which will be built at Wuchang Shipbuild- velopments have occurred on the corporate side in recent ing in China. The vessels will be prepared for alternative weeks. Investors with strong competence in the space are fuels, including a large battery package with expected de- positioning themselves for a prolonged period of strong livery in 2026. The vessels are a further development of earnings, and we can expect further M&A activity going the successful SALT 305 design, which will be suitable forwards as newbuilding is still limited owning cash gen- towards both traditional oil and gas clients and core off- erating steel is a top priority. Nonetheless it still bodes shore wind scopes. well for the future prospects of the subsea construction

As we head into a stage of the cycle where vessel short- segment as these market movements all point to even ages could very well soon be reality, we see these newbuilds brighter days ahead.

MARCH/APRIL 2024 OFFSHORE ENGINEER 21