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Middle East OSV rates may drop: Atlantic Navigation

Middle East OSV rates may drop: Atlantic Navigation
Charter rates for offshore support vessels (OSVs) operating in the Middle East may decline as more owners push out extra tonnage, offsetting the positive effects of healthy offshore oil and gas activities, according to Atlantic Navigation.

The integrated marine logistics services provider and ship repairer is seeing strong levels of offshore oil and gas activities in the Middle East, supported by current sustained levels of crude oil prices that in turn underpin offshore exploration and production.

“However, charter rates may moderate due to vessel owners putting out additional capacity,” investment holding firm Atlantic Navigation said.

“In order to remain competitive, the group will continue to renew and grow its fleet to meet the unique demands of the region. The group also recently made its first foray in Africa and is currently exploring strategic partnerships to expand its presence there,” it added.

The UAE-based company owns, operates and charters a fleet of 13 OSVs primarily in the Middle East and India.

In the first quarter ended 31 March 2013, Singapore-listed Atlantic Navigation posted a 75.6% year-on-year plunge in net profit to $1.95m. Revenue during the quarter also dropped 17.3% to $10.24m.

The company was listed on Singapore Exchange on 1 October 2012.

TAGS: Offshore