Norwegian-based offshore support specialist Farstad Shipping made a Q3 operating profit of NKr536.8m (US$83.5m), up by NKR99.2m on Q1 due, says Farstad, “to a combination of a very good market, increased number of vessels in the fleet and favourable exchange rate development”.
Farstad says: “The market for the supply vessel fleet is now very good. The rate level has improved in all markets both for the AHTS and PSV. In the North Sea there has been close to full utilization during the quarter resulting in a record high rate level. The increased activity level in the North Sea this year has particularly been important to maintain the market balance and a high rate level for the PSV fleet. There are presently approx. 20 more PSV vessels operating in the North Sea compared with the same period last year. We are expecting a correction in the market for PSV vessels as a consequence of the large number of vessels still under construction (approx. 110 vessels with DWT greater than 2000 DWT). The rate level for the AHTS fleet is expected to be good also in the near future. However, if the number of newbuilds continues to rise this might result in a temporary unbalance in the market.” The company’s adds: “High oil prices, the oil companies increased focus on exploration and the contracting of new rigs are positive for the demand of supply vessels. The contract coverage for the Farstad-fleet in 2007 is approx. 66%.”
