The month of August put a stop to the sky-high rates in the North Sea market for offshore vessels, where earnings during the summer have otherwise been record high for the strained offshore operators.

The day rate for an anchor-handling tug supply (AHTS) vessel on Norwegian territory fell to below NOK 200,000 (USD 19,600) per day in August, the lowest level since the start of the year, while rates in the British part of the North Sea declined by GBP 21,700, writes Finansavisen.

But things are still looking better for the market than they have for long, says Jesper Skong, analyst from Fearnley Offshore Supply, to the Norwegian media.

He highlights that the need of energy security and a high oil price are expected to keep up demand in the coming time.

”The euphoria from the summer has come to an end, but fundamentals are still strong. Demand within both oil and gas, offshore wind, and decommissioning will increase going forward,” he tells the media.

However, there are some challenges ahead, according to the analyst, including an increasing inflation and weaker outlooks in regards to economic growth.

Carriers expect strong market for several years

Among carriers, expectations are high for a market that has otherwise been a source of headache since the oil price dived in 2014.

In relation to its financial report at the end of August, Siem Offshore stated that demand would hold on for years.

”The expected increase in activity in Brazil, West Africa and the North Sea is now showing signs of realization from 2022 and onwards. We reiterate our positive outlook that our young and advanced fleet will be in demand for many years to come,” the carrier wrote.

And Solstad Offshore’s CEO Lars Peter Solstad said in August that the upswing has truly begun for offshore carriers.

”The current market and the number of inquiries have things looking good, and we have already booked approx. 2.5 billion to be executed in the second half of the year. In addition, we have available capacity beyond that, which is looking to become useful this year and the next,” he said in an interview with sister media ShippingWatch.

(This article was provided by our sister media ShippingWatch)

Solstad: Supply upturn already underway

Offshore suppliers eye fresh orders as oil companies’ profits soar