OSV Companies Running Out of Options -Study
As oil continues to sell below $50 per barrel, 2017 could be one of the toughest years in decades for Offshore Supply Vessel (OSV) companies, according to a study of 44 companies in the industry by AlixPartners. The firm’s analysis highlights these companies’ rising debt burdens, making it increasingly unlikely that most of them can maintain solvency. The industry faces grave financial pressure, which is clear from recent bankruptcy filings and distressed mergers. Exploration and production (E&P) companies have drastically reduced their rig counts, causing demand for OSV services to plunge.
Sembcorp Marine Swings to Loss in Q3
Singapore's Sembcorp Marine Ltd swung to a loss in the third quarter and the rig builder's revenue was hurt by customers deferring rig deliveries amid a protracted downturn in the oil and natural gas market. The company posted a net loss of S$21.8 million ($15.7 million) for the three months ended Sept. 30, compared with a net profit of S$32.1 million a year ago. It said the bottomline was hurt by higher financing costs, share of losses from associates and foreign exchange impact. The company, majority-owned by industrial conglomerate Sembcorp Industries Ltd, said revenue dropped 21 percent.
Sembcorp's PPL Shipyard Gets Another Perisai Jack-up Order
Sembcorp Marine's subsidiary PPL Shipyard has secured a repeat order to build a third Pacific Class 400 jack-up rig worth US$211.5-million from Perisai (L) Inc, a wholly-owned subsidiary of Perisai Petroleum Teknologi Bhd. Scheduled for delivery in the third quarter of 2016, this third jack-up rig will be built based on PPL Shipyard’s proprietary Pacific Class 400 design with similar specification as the first and second jack-up rig units, named Perisai Pacific 101 and Perisai Pacific 102.
Singapore's Sembcorp Gets Perisai(L) Rig Contract
Sembcorp Marine's PPL Shipyard secures a repeat order for a jack-up rig worth US$208-million from Perisai (L) Inc. The second jack-up rig ordered by Perisai (L) Inc. a wholly-owned subsidiary of Perisai Petroleum Teknologi Bhd., will be built based on PPL Shipyard’s proprietary Pacific Class 400 design with similar specification to the first jack-up unit, now named Perisai Pacific 101, secured in May 2012. Incorporating the latest drilling equipment for improved drilling efficiency, offline handling features and simultaneous operations support, this high specification rig is capable of operating in deeper waters of 400 feet and drilling high pressure and high temperature wells to depths of 30,000 feet.
