Photo: Standard Provider; Image by: Rab Lawrence; Source: Flickr

Standard Drilling sells platform supplier for $13.5 million

Norwegian offshore vessel owner Standard Drilling has entered into a memorandum of agreement to sell one of its platform supply vessels (PSVs).

Standard Provider; Image by: Rab Lawrence; Source: Flickr

Standard Drilling said on Tuesday it had sold the Standard Provider PSV for $13.5 million.

The UT 776 CD design large PSV vessel was built at STX Brevik in 2010 and has 1,000 square meters of deck space.

Standard Drilling has received a 10 percent deposit of the purchase price for the vessel through its Standard Provider AS subsidiary from an undisclosed buyer. The transaction is expected to be completed during October 2019.

Following the sale, the company will, directly or indirectly, control a fleet of 14 PSVs, five large PSVs and nine medium PSVs, including one vessel on a bareboat contract.

Martin Nes, chairman of Standard Drilling, stated: “We are pleased with the sale of the Standard Provider. The transaction will increase our cash balance significantly. Standard Provider was acquired for $11.1 million.

“The profit, excluding fair value adjustments, will be approximately $3 million, including the result of the operation of the vessel.

“By selling the Standard Provider we have also reduced forward capital expenditures commitment due to the fact that the vessel has a 10-year survey early next year.”

It is worth noting that the company will have a pro forma cash holding of approximately $41 million following the transaction.

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