Floor price! Singapore shipowners are bottom fishing in the OSV market

2017-06-14 09:00

Singaporean shipowner Kim Heng Offshore & Marine acquired three AHTS vessels originally worth nearly US$100 million for just US$9.6 million, taking advantage of the market downturn to acquire assets from Swiber and officially entering the offshore support vessel (OSV) market.

Kim Heng was previously known for operating shipyards and was also a tugboat and barge owner. It is understood that Kim Heng Offshore & Marine recently acquired at a low price three 10800bhp multi-purpose workboats (AHTS) from the bankrupt Singaporean shipowner Swiber. These three AHTS are "Swiber Anne-Christine" (built in 2009), "Swiber Else-Marie" (built in 2009), and "Swiber Mary-Ann" (built in 2010). Each is 70 meters long, 16.8 meters wide, and 7.5 meters deep, equipped with a DP2 dynamic positioning system, a bollard pull of 130 tons, and classed by American Bureau of Shipping . The total price for the three AHTS was only US$9.6 million, while the price of these AHTS once exceeded US$30 million per vessel.

Kim Heng plans to use these three AHTS to provide towing services for clients' self-elevating drilling platforms and also engage in rescue work. If opportunities arise, Kim Heng will also use these three AHTS for long-term charter contracts. The maintenance and upkeep of these AHTS will be handled by Kim Heng's own shipyard.

Kim Heng stated that the current market downturn allowed the group to acquire the above three AHTS at a very low price. Kim Heng's CEO, Thomas Tan, said that the uncertainty in the market environment brought investment opportunities to Kim Heng, and he is pleased that Kim Heng was able to successfully acquire these vessels at a fraction of the cost, thereby strengthening its long-term market position.

Kim Heng will use S$8.5 million (approximately US$6.14 million) obtained through an initial public offering (IPO) and S$5 million (approximately US$3.61 million) from existing bank loans to fund this transaction.

In July 2016, Singaporean offshore construction and services provider Swiber Holding officially filed for bankruptcy and provisional liquidation. Swiber focused on the integrated construction and support services of shallow-water oil and gas fields, with a fleet of 51 vessels, including 13 construction vessels.

Last December, United Overseas Bank (UOB) of Singapore, as the mortgagee, seized these three AHTS from Swiber. UOB attempted to auction these AHTS twice in April and May of this year, but failed to find a buyer.

Survival of the fittest? The structure of offshore support vessel owners is changing

Unmanned bulk carriers are here! The global shipping market is undergoing a dramatic upheaval.

COOKIES

Our website uses cookies and similar technologies to personalize the advertising shown to you and to help you get the best experience on our website. For more information, see our Privacy & Cookie Policy

COOKIES

required

These cookies are necessary for basic functions such as payment. Standard cookies cannot be turned off and do not store any of your information.

analyze

These cookies collect information, such as how many people are using our site or which pages are popular, to help us improve the customer experience. Turning these cookies off will mean we can't collect information to improve your experience.

Feature

These cookies enable the website to provide enhanced functionality and personalization. They may be set by us or by third-party providers whose services we have added to our pages. If you do not allow these cookies, some or all of these services may not function properly.

advertise

These cookies help us understand what you are interested in so that we can show you relevant advertising on other websites. Turning these cookies off will mean we are unable to show you any personalized advertising.

WeChat Official Account

Video account

Douyin account

Business License