Olympic Ship completed a restructuring and refinancing deal with local Norwegian investors in late 2016
The deal includes the formation of a new subsea company as a key element. Chief executive Stig Remøy said: “We have achieved a long-term, sustainable solution, safeguarding the main parts of the business. As part of the solution, we will form a new entity, with adequate funding to survive the downturn in the market. The new company, Olympic Subsea, has been refinanced until the end of 2021.”
Eleven modern subsea vessels from Olympic Ship’s fleet will be acquired by the new entity, which will be funded with equity from Olympic’s existing and new investors. Olympic Ship will become a subsidiary of Olympic Subsea. Five PSVs and three anchor handlers will remain with Olympic Ship.
Part of the deal involved the sale of four vessels. Three of them, Olympic Commander, Olympic Poseidon and Olympic Hera, went to one of the secured new lenders. The fourth vessel, Olympic Athene, has been sold to Swire Pacific Offshore.
With so many vessels laid up, it is natural that owners with ships on order have considered options for cancellation or delaying delivery of OSVs that do not have firm charters, depending on the financial cost of doing so. Siem Offshore managed to cancel two out of four dual-fuelled PSVs it had on order at Remontowa shipbuilding in Poland.
Nonetheless, some owners are still going ahead with specialist dedicated tonnage. For example, Subsea 7 has a new construction flexlay vessel, Seven Arctic, designed for deepwater and harsh environments in depths up to 3,000m. It was built by Hyundai Heavy Industries (HHI) in South Korea to Lloyd’s Register class. Seven Arctic is 162.3m long and 32m wide, with a 600 tonne top tension tiltable lay system with three cranes, up to 1,000 tonnes capacity. The vessel is due to enter service in the first half of 2017. It is powered by six diesel generators producing 25,000kW driving eight thrusters.
Subsea 7 has also taken delivery of Seven Kestrel, a dive support vessel, also built by HHI. It has an 18-person twin-bell saturation diving system, rated for water depths of up to 300m. Both vessels were designed by Subsea 7 engineers in collaboration with HHI and Wärtsilä Ship Design, Norway.
John Evans, Subsea 7 chief operating officer, said: “We have one of the most modern, capable and diverse fleets of vessels in our market segment that differentiates our industry leading service. The arrival of Seven Arctic and Seven Kestrel further strengthens our fleet. Seven Arctic delivers an important step change in our subsea construction capability, particularly in ultra-deepwater fields, which pose increasingly technical challenges, while Seven Kestrel reinforces our leading diving capabilities.”
According to Subsea 7 these deliveries complete a substantial targeted fleet investment programme consisting of six newbuild vessels between 2014 and 2017.