OSV market in early stages of recovery, Aussie operator says

The Australian offshore support vessel operator MMA Offshore sees an improvement in the OSV market, but it’s still the early stage.

“The offshore vessel market continues to be in the early stages of recovery with increasing activity and a tightening in the market for high specification vessels,” the company said in its trading update on Monday.

MMA Offshore the recently secured OSV contract extensions have contributed to increasing its level of contracted utilization for the remainder of the 2019 calendar year from 39% at the Half Year to 49% currently.

The “MMA Privilege”, which is currently operating as an Accommodation and Walk to Work vessel supporting FPSO maintenance in Côte d’Ivoire, has had its contract extended by six months through to 31 December 2019 with client options to extend to March 31, 2020.

The “MMA Pride”, which is operating as a Walk to Work vessel in Brunei, has also had its contract extended by nine months through to 31 December 2019.

MMA said that the “MMA Pinnacle” vessel has recently completed the first phase of its Walk to Work contract for Woodside supporting platform maintenance in the North West Shelf.

“The project was completed safely and on-time and paves the way for an innovative, safer and more efficient approach to platform maintenance logistics in the region,” MMA said.

The vessel is currently engaged in short-term inspection, maintenance, and repair (IMR) scopes within Australia – with the second phase of the Woodside Project due to start in September 2019.

Also, MMA reminded it was supporting Santos’ drilling program in Australia through to August 2019 with options to extend, as well as drilling support activities in Malaysia, “further adding to our
contract coverage for the calendar year.”

In its trading update, MMA confirmed its previous earnings guidance of full-year FY2019 operating EBITDA in the region of A$27 million. On this basis, MMA will be within the terms of its banking covenants – which resume being tested on June 30, 2019, the company said.

MMA in April said David Ross, Deputy Chief Executive Officer would be promoted to Chief Executive Officer effective July 1, 2019. Ross will be based in MMA’s Singapore office to drive international growth at a critical time in the cycle, MMA said.

“Mr. Jeffrey Weber, current Managing Director and Chief Executive Officer will remain as Managing Director, based in Australia and at an appropriate time in the future will transition this role across to David Ross as part of an orderly succession,” MMA said on April 12.

The OSV company explained that the management change was needed to “enhance the company’s ability to take advantage of a recovery in market conditions.”

“There is clear evidence the market is improving with an increasing number of newly sanctioned projects, and increased drilling and exploration activity which will translate to increased demand for MMA’s vessels and services. MMA remains one of the best positioned Offshore Support Vessel companies to take advantage of an improvement in market conditions and the leadership changes will further enhance that position,” MMA said.

Offshore Energy Today Staff

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