Standard Drilling sells 10-year-old PSV for $15M

Norway-based offshore vessel owning company Standard Drilling has agreed to sell its Standard Supporter platform supply vessel for $15 million.

The ten-year-old platform supplier is a large PSV with 1,000m2 deck space, built at STX Brevik, Norway. Standard Drilling said the sale would further strengthen the company’s cash balance. The company did not share the identity of the buyer.

Standard Drilling’s subsidiary Standard Supporter AS has received a 10% deposit of the purchase price. The transaction is subject to inspection and expected to be completed within December 2019.

Following the sale, Standard Drilling will control, directly and indirectly, a fleet of 13 PSVs; four large PSVs 100% owned and nine medium-sized PSVs with around 26% ownership interest, including one vessel on a bareboat contract. The sale of the Standard Supporter comes after the company in October said it had sold the Standard Provider PSV for $13.5 million. 

Martin Nes, Chairman of the company, said on Tuesday: “We are pleased with the sale of the Standard Supporter. The transaction will strengthen our strong balance sheet even further, increasing our cash balance significantly. During 2019 we have purchased one large PSV (Standard Olympus, 2014 built) and sold two large vessels (including Standard Supporter) showing that we continue to follow our strategy.

“Standard Supporter was acquired in 2017 for $11.1 million. The profit, excluding fair value adjustments, will be approximately $4 million including the result of the operation of the vessel.  By selling Standard Supporter we have also reduced forward capital expenditures commitment in relation to the Vessel due in 2020.”

One can say that Standard Drilling has scored a good deal for the Standard Supporter, given that VesselsValue, a website providing vessel evaluations, currently values the Standard Supporter at $5.7 million.

Offshore Energy Today Staff

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