The challenging OSV market, on the back of a global pandemic, weakened oil price and subsequent drop in demand, has caused many vessel owners to go into survival mode. Bourbon Offshore, one of the world's biggest OSV players, is now in the hands of banks, while in Norway, companies like Solstad Offshore has had to agree massive financial restructuring in order to stay afloat. Another of Norway's biggest OSV players - Siem Offshore - has also been deeply affected by challenging market conditions. It has once again made the call for owners to come together to help improve market balance, having previously suggested that banks themselves need to do more to help vessel owners out. Siem Offshore has called for more consolidation among vessel owners, calling this "one of the few measures that can effectively contribute to an improved market balance". The owner made the comments as part of its third quarter financial report. Siem commented: "We continue to believe that consolidation among vessel owners is one of the few measures that can effectively contribute to an improved market balance. However, even with industry consolidations, it will be difficult to achieve sustainable market rates in the medium term." The owner continued: "With several of the banks financing multiple shipowners who are in direct competition with each other, we see it necessary that banks take an active role working with the shipowners to create solutions through practical and viable consolidations with the ambition to build a sustainable commercial platform. Only through such measures can revenues be increased, operating costs be reduced, and rational long-term plans created." Siem recorded operating revenues of USD 70.5 million for third quarter 2020, down from USD 77.9 million for the corresponding period in 2019. A net loss of USD 2.7 million was recorded for third quarter 2020, compared to a loss of USD 2.3 million for the same period in 2019. Siem recorded a net loss of USD 301.7 million for the first nine months of 2020, compared to a loss of USD 42.2 million for the same period in 2019. Siem currently has five vessels in lay-up.
展开▼
