Island Offshore to Lay-Up More Vessels During Winter

Norway-based Island Offshore, an operator of the fleet of 28 vessels, informed that the number of vessels in winter lay-up may increase to 14, which constitutes 50% of the company’s fleet.

Currently the company has 11 vessels in lay-up whereof 5 are cold stacked.

The number of vessels in lay-up may increase from 5 to 9 in coming months, the company noted.

One additional vessel will go into winter lay-up due to planned drydocking and re-class programs. Two additional vessels are expected to complete the current work program by early December, and will go into lay-up upon completion of work, the company explained.

Island Offshore vessel fleet ranges from platform supply vessels, anchor handling vessels, subsea construction vessels to light well intervention vessels.

Furthermore, Island Offshore has reported an increase in profit before tax totaling NOK 96 million, compared to NOK 58 million in the prior year quarter.

The company’s revenues were lower in Q3 2016 amounting to NOK 560 million compared to NOK 711 million in the Q3 2015.

“The cost improvements implemented in 2015 and 2016 are now making a significant contribution to earnings, especially vessel lay-ups and associated crew reductions, but also salary reductions, reduced administration expenses and maintenance efficiency measures,” the company said.

The company also added that it expects to see an earlier recovery for the LWI and part of the subsea market, while conventional PSV and AHTS markets continue to be depressed despite the number of vessels in lay-up increasing to approximately 130.

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