50% gain ?4 Mar 2017 12:28
A 50% gain on no news I don't think we are being told the complete story here.
I have a large knowledge of the offshore industry sailing on offshore vessels for the last 20years in capacity as Chief Engineer, at present I see myself lucky to be employed with the largest Australian offshore company.
I have had a quick look at the vessels that they have purchased, & make no mistake they are a heap of junk, they are very old. It will take a lot of money & time to make these vessels fit for future contracts. At the moment the offshore vessel market is on its knees, to many vessels laid up, chasing to few contracts, which in turn means reduced rates. Some of this fleet will not work again saying that do not just take my opinion on this they basically admit that in one of the RNS.
That may appear very negative what I have written, but there is signs of a pick up in the market, maintenance offshore cannot be put off for ever. IF they can get 2 or 3 of these vessels working revenue coming in maybe reinvest get another 2 or 3 working more revenue. Scrap the rest of there fleet & start investing in some larger more modern vessels, means higher rates. There is plenty of good laid up vessels at the moment that the banks or finance houses own.
The one good thing is they do not have large mortgages on this fleet of junk. Many offshore companies started off just like this slowly slowly.