Seacor Marine selling North Sea ERRV business
Offshore support vessel provider Seacor Marine has decided to sell its North Sea emergency response and rescue vessel business to North Star.
Under the terms agreed, North Star will pay approximately £19.5 million (equivalent to approximately US$25.1 million). North Star might also pay up to £4 million ($5.2 million) based on revenue targets being achieved in 2020 and 2021. The transaction is expected to close in early December 2019 if all the conditions are met by then.
John Gellert, Seacor Marine’s Chief Executive Officer said the divestment was the continuation of Seacor’s strategy of reducing costs, optimizing regional footprint, and focusing resources on core assets, regions and services with the highest potential for improved margins. He said that the proceeds from the transaction would help us Seacor to realize the goal of achieving profitability independent of a full market recovery in oil and gas services.
“We entered the ERRV Business in 2001 and it has been a positive contributor to our fleet mix and performance ever since. I thank all the employees working in the ERRV Business for their dedication and commitment to safety all these years and express confidence in their ability to build a class-leading ERRV business with North Star,” Gellert said.
Seacor Marine in August reported a 2Q net loss of $28,4 million. The company then said it had initiated cost reduction initiatives including layoffs, reorganization of the management structure, and closure and/or consolidation of certain facilities in the U.S. Gulf of Mexico, the Middle East, and Europe.
Seacor in August said it expected the cost-cutting initiatives would realize annualized recurring savings of at least $8.0 million.
According to Seacor’s Annual report for 2018, the company last year had 19 standby vessels in the North Sea region.
Offshore Energy Today Staff
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