Page 6: of Offshore Engineer Magazine (Jan/Feb 2025)

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MARKETS SOV/CSOV SEGMENT © Trygve/AdobeStock

SOV/CSOV Trough 2030:

Oversupply and Market Volatility By Philip Lewis, Research Director, Intelatus Global Partners here has been much interest in the Service Op-

Defning the Segment eration Vessel (SOV) and Commissioning Ser-

SOVs have traditionally been associated with long-term vice Operation Vessel (CSOV) segment in re- wind farm operations and maintenance support charters of cent years. As a consequence of this interest, the 10 years or more, and increasingly mid-term (2-10 years)

T combined SOV and CSOV ?eet will almost double in size deployment. The guaranteed utilization results in vessels from the end of 2024 to 2028. The rapid expansion of on charter for comparatively low day rates, often yielding the offshore wind ?eet is creating both opportunities and single digit IRRs.

risks. While the demand for offshore wind support ves-

CSOVs have traditionally been chartered for offshore sels is growing, the near-term oversupply will put ?nancial wind construction and commissioning campaigns, last- pressure on vessel owners and could trigger S&P (vessel ing two years or less. Day rates for these vessels respond sales & purchase) and M&A (company mergers and ac- quickly to vessel supply and demand balances. Although quisitions) opportunities. However, looking beyond 2030, these rates have been trending up, the forecast vessel new vessel orders will be required to sustain the next phase oversupply in 2025-2035 is expected to impact utiliza- of offshore wind development.

tion and day rates. Some CSOVs have been chartered to

A new 110-page report from Intelatus Global Partners satisfy long-term requirements, but at SOV rates. While presents an in-depth review of the SOV and CSOV mar- some of the surplus vessels are likely to ?nd employment ket analyzes the reasons for an imminent oversupply of in the oil & gas sector, this shift will not be suf?cient to vessels that could disrupt the offshore wind sector be- offset the excess supply.

tween 2025 and 2030.

Our forecast covers two tiers of vessels: 6 OFFSHORE ENGINEER OEDIGITAL.COM