Deep Sea Supply Plans Significant PSV Fleet Expansion

Deep Sea Supply, a Cyprus-headquartered owner of offshore support vessels, is looking to significantly expand its fleet to meet growing demand.

In its quarterly results release, the shipowner revealed it is in talks with PSV Holding Inc, a company affiliated with Hemen Holding, to acquire up to ten newly built platform supply vessels.

“Increased activity, both in established and new markets, continues to drive demand for large and modern OSVs, and Deep Sea Supply’s fleet of cost efficient vessels is well positioned to take part of this development.”

Deep Sea Supply said it would pay for the PSVs “by existing  cash, senior bank debt, seller’s credit and with limited or no use of new equity.”

Deep Sea Supply has 15 AHTS vessels and 11 PSVs in operation, in total 26 vessels. 2 of these vessels (PSVs) are hired on a bareboat contract from PSV Holding, a company affiliated with Hemen Holding, an investment group run by John Fredriksen, a Norwegian-born Cypriot oil tanker and shipping tycoon.

The company said it remains cautiously optimistic for the OSV market in the remainder of 2013 and 2014.

It said: “Many new rigs will be delivered in the coming years, which is positive and moving the supply/demand balance in favor of OSV owners. Increased activity, both in established and new markets, continue to drive demand for large and modern OSVs, and Deep Sea Supply’s fleet of cost efficient vessels is well positioned to take part of this development.”

The company currently has 6 vessels under construction at Sinopacific Shipyard. The first vessel named “Sea Forth” is expected to be delivered in August 2013.