Eidesvik sees more bid activity but rates still low

Norwegian shipping company Eidesvik Offshore sees more bid activity in all segments the company operates in, but rate levels are still low. 

However, Eidesvik said in its 4Q 2017 report on Wednesday that, with increased demand in the future, it is expected that the rate level will increase.

Eidesvik’s net loss in the fourth quarter 2017 more than halved totaling NOK 221.1 million ($28.1M) compared to NOK 513.9 million ($65.2M) loss in 4Q 2016.

In the fourth quarter of 2017 Eidesvik Offshore had revenues of NOK 133 million ($16.9M), a decrease compared to NOK 209.4 million ($26.6M) in the corresponding period in 2016.

According to the company, the PSV segment is experiencing an increasing number of tender requirements for both short and longer term periods. Rate levels remain volatile, and the utilization has been varying over the winter season. Operators are currently securing vessels for the upcoming summer season and the company sees a certain tightening in the market for large and modern PSVs.

The subsea segment started 2018 with several large EPCI awards with Johan Castberg as the main project in the North Sea. Offshore days for these construction projects are expected to start in 2019 and onwards, and Eidesvik’s long term perspective for the activity level in this segment remains positive.

For near term work the accommodation and Walk to Work market remains active with several open tenders, and the company expects an increase in IMR requirements with the start of the subsea season. For streamer seismic there are indications of better market sentiment in 2018.

Eidesvik also sees an improvement in bid activities within the ocean bottom seismic segment over the past months.

Offshore Energy Today Staff