‘Promising’ PSV Charter Deals For Norway´s Standard Supply, JJ Ugland

Two owners based in Norway have secured long-term deals for platform supply vessels (PSVs) in increasingly promising markets.

Norway´s family-owned shipping and offshore enterprise JJ Ugland fixes PSV in hot market.

The owner said Ugland Supplier AS has been awarded a charter contract by Equinor ASA for the PSV Juanita.

The vessel will be operating in the North Sea and the fixed period is for minimum 3 years with 2 x 1 years options. The delivery of Juanita is directly after completion of present charter contract with Equinor in June 2023.

“We are very pleased with this contract and are looking forward to continue delivery quality of services to Equinor,” said JJ Ugland.

Juanita has been on contact with Equinor since delivery from Kleven Yard in 2014.

Another owner of PSV, also based in Norway, Standard Supply which owns a fleet of nine Platform Supply Vessels (PSVs) reports 1-year time charter for the Standard Supplier at $23,000 per day to a major oil company in the North Sea.

The contract for the 2007 Norwegian build vessel had a commencement date on June 1st with additional six months of options at approximately $31,000 per day.

Martin Nes, Chairman of the Board of Standard Supply said “As long-term contracts are approaching unprecedented highs, our focus remains on identifying attractive deals not only in the North Sea but also on an international scale, with particularly Brazil and West Africa showing signs of being completely sold out of capacity. Our present fleet coverage extends through to November 2023 with an average daily rate of USD 17,000 per day. The Standard Supplier’s contract alone will increase our distribution capacity with approximately NOK 0.3 per share over the coming twelve months”.

Martin Nes further adds, “This agreement exemplifies the robustness of the current charter market, with current earnings resulting in paybacks in less than three years. Our larger PSV vessels are trading at an implied value of around USD 16 million, while this contract is projected to produce roughly USD 5.5 million of Ebitda”.