Standard Drilling buys Norwegian-built platform supplier

S.D. Standard Drilling has bought a platform supply vessel of a Havyard 832 design for just a little over $8 million. 

Standard Drilling said on Wednesday it had bought the PSV vessel Olympus through its subsidiary, Wanax AS, S.D. Standard Drilling,

All terms have been agreed and there are no further conditions. The vessel is a large PSV, built at Havyard Ship Technology, Norway, in 2014, with 800m2 deck space.

The vessel has been acquired for a total consideration of $8.1 million, which will be financed by available cash. The acquisition is expected to be completed within ten business days.

The vessel was sold through a court process by the Admiralty Marshal, Supreme Court, Gibraltar. It has previously been working in the UK sector and North Sea and will be available for charter from completion of the transaction.

According to information on VesselsValue, the vessel was previously owned by India’s Global Offshore Services. Built by Havyard, it was the third in the series of Havyard’s 832 design, and the eighth vessel to be delivered to Global Offshore Services.

After the transaction, Standard Drilling has 100% ownership of six large-size modern PSVs. In addition, the company has invested in 9 mid-size PSVs, bringing the total fleet of partly and fully owned vessels to 15 PSVs, including one vessel on a bare-boat contract.

Martin Nes, Chairman of S.D., said: “We are very pleased with the acquisition of the vessel. The vessel is favorably priced at ~$8.1 million, representing a discount of ~82 % to $44 m estimated newbuild price and a discount of ~77% to the 25-year current newbuild parity of a 5 year old vessel with an implied value of ~$35.2m.

“Furthermore, the Norwegian-built vessel, which is well-recognized and attractive among charters with a proven design, is in very good condition.”

Fletcher Shipping will be acting as technical and commercial manager for the vessels.

Standard Drilling currently has a cash holding of approximately $36 million before the purchase and payment of the vessel. This includes cash held by S.D. Standard Drilling including through its pro-rata ownership of cash in subsidiaries and investments.

In related news, Standard Drilling in March scored three longer-term contracts for its platform supply vessels.

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