World News
Nordic American Offshore: "Optimistic Outlook" for the Future Despite Turbulent Market
Nordic American Offshore Ltd. (NAO) [NYSE:NAO]'s Executive Chairman, Herbjørn Hansson, Tuesday told investors he believes it is "justified to keep an optimistic outlook for the future" of the Platform Supply Vessel (PSV) market, despite current tough conditions.
The company, which is understood to be 26 percent owned by Nordic American Tankers (NAT), listed less than one year ago.
"We entered the market for Platform Supply Vessels against a background of high, stable oil prices and record investment levels in the offshore segment," said Hansson.
However, present conditions are more challenging for the business.
"Currently the market for our vessels is turbulent - the decline in oil price has led to reductions in exploration activity in the North Sea, in turn lowering the number of working oil rigs and the demand for PSVs," he said.
Nonetheless, NAO has five of its eight "modern, fuel efficient and homogeneous vessels" employed under contract, up from three last quarter, with the rest operating on the spot market.
The company has achieved 80 percent utilisation for its vessels so far.
"When Brent crude prices return to the $60 - $80 range per barrel we expect to see renewed activity in our market, and improved demand for our vessels," said Hansson in support of his optimism.
In December, Hansson said the falling oil price had spurred rates for NAT's crude tankers, but oil traders who were said to be behind the surge in rates have since relented in the hiring of very large crude carriers (VLCCs) as floating storage.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 523.50 | 6.50 | 613.00 | 6.00 |
| Rotterdam | 472.50 | 2.50 | 630.50 | 4.50 |
| Houston | 468.00 | 2.50 | 619.50 | 4.50 |
| Fujairah | 520.00 | 13.00 | 724.00 | 10.50 |
| Global 20 Ports Average | 539.00 | 1.00 | 720.00 | 3.00 |
| Global 4 Ports Average | 496.00 | 3.00 | 647.00 | 1.50 |
| Global Average Bunker Price | 572.50 | 2.00 | 765.00 | 3.00 |
Popular Now More
-
May 13The firm will no longer take on new business after more than 45 years in bunkering. -
May 16Vitol Bunkers has launched a barge-based physical supply operation in West Africa. -
May 13The new hire was previously managing director and partner in the US for The Bunker Firm since March 2024, and had earlier worked for WFS for nine years.