20070201 - Asian Workboat OSV Forum - February 2007, Singapore

Marine Pte. Ltd.Marine Pte. Ltd.Ride on a sea of creative solutions

Asian Shipping and Workboat Exhibition

Suntec, Singapore

OSV Forum

Tuesday February 6th 2007

Marine Pte. Ltd.Marine Pte. Ltd.

M3 - who we are and what we do

Brokers and Marine Consultants

Commercial

•Chartering (Time and Bareboat)

•Sale and Purchase

•Newbuildings

Technical

•Inspections (IMCA, DP, SnP, OPCO)

•Safety Inspections / Accident Investigations

•General Marine Consultancy (Offshore)

www.m3marine.com.sg


Overview

Presentation Aims

•Market wrt Vessel Numbers / Newbuilds

•‘Owners Mix’ with respect to what are we seeing in Asia

•This presentation will not deal with the Techno – Operational Challenges Owners are facing but no doubt some will enter the discussion.


Market

•Unprecedented high levels of Utilisation

•Rates as high as we have ever seen

•Spot UT704s in the mid $20k’s per day

•New 5000 BHP vessels in mid teens (around the $3 / BHP mark).

•Crazy crazy prices for ‘spot’ rig moves

•Subsea support vessels at all time highs

•Sellers Market (Charter and SnP)

•Shipyard supply tight through 2010

•Suppliers have upper hand, prices rise, deliveries long

•Crews in short supply, Crew costs rising

•Technical competence of crew diminishes as vessels become more complex

•More and More paperwork


PSV Market (1500 – 4000T DWT)

•Relevance to Asia

•395 vessels in Operation

•103+ vessels still to be delivered (majority UT755(L))

•Newbuilds notably from Norway, China, India

•Average Fleet age 10 years

•Larger vessels not covered as relevance to Asia minimal (except Subsea)

Is the PSV market being overbuilt?

Graphic courtesy RS Platou (Asia)


Small AHTS Market (4000 – 7000 BHP)

•The dominant vessel type in Asia

•531 vessels in Operation

•80+ vessels still to be delivered (large amount of smaller 5150 BHP type)

•Newbuilds notably from China, China, China with a ‘smattering’ of Singapore / Batam and India.

•Average Fleet age 26 years.

Where are the old vessels going?


Are there too many 5150 BHP type vessels on order ?

Are there too many 5150 BHP vessels on order ?


Medium AHTS Market (7000 – 12000 BHP)

• Growing demand in Asia

• 357 vessels in Operation (Global)

• 110+ vessels still to be delivered

• Newbuilds: vast majority being built in Asia

• Average Fleet age 22 years

16 vessels to be delivered in 2010 – 2011, all Bourbon


Comparisons with overbuilding in the PSV sector ?


Large AHTS Market (12000 BHP+)

• Growing demand in Asia

• 213 vessels in Operation (Global), mostly N Sea, South America, West Africa

• 98+ vessels still to be delivered

• Newbuilds: vast majority being built in Norway thereafter Singapore and Japan

• Average Fleet age 11 years

Most of the ‘later’ deliveries are relative newcomers to the Large AHTS market (CHO, Sanko and Sealion)



Vessel Vessel TypeType SizeSize

No. No. In In

ServServ..

To Be To Be DelivereDelivere

dd

AvAve e

AgAgee

20020077

20020088

20020099

20120100

20120111

TotaTotall

Small PSVSmall PSV 1,000 to 1,500T 1,000 to 1,500T DWTDWT

302302 1212 2424 99 33 1212

Medium Medium PSVPSV

1,500 to 4,000T 1,500 to 4,000T DWTDWT

395395 104104 1010 4141 5151 1212 104104

Large PSVLarge PSV >4000T DWT>4000T DWT 115115 4949 55 2626 1515 77 11 4949

Total:Total: 812812 165165 7676 6969 1919 11 165165

Small Small AHTSAHTS

4,000 to 7,000 4,000 to 7,000 BHPBHP

531531 7979 2626 5252 1818 99 7979

Medium Medium AHTSAHTS

7,000 to 12,000 7,000 to 12,000 BHPBHP

357357 108108 2222 4040 3434 1717 1010 77 108108

Large Large AHTSAHTS

12,000 BHP+12,000 BHP+ 213213 9898 1111 2525 3131 3030 1010 22 9898

TotalTotal 11011011

285285 117117 8383 5656 2020 99 285285

Consolidated OSV MarketConsolidated OSV Market


TDW – Extensive Global Fleet, Fleet replacement lags need, newbuild programme does not meet demand. Poised to take on newbuilds from ‘strugglers’ if (when?) market craters

CKH – Global Player and Trader, a slight refocus on OSV sector post Seabulk merger with a conservative build programme with ‘healthy’ disposal of older assets.

Traditional Owners


Gulf – Major NSea PSV player with aged Asian Fleet, poised for sizable growth in Asia as enters into Medium AHTS market with newbuilds

SPO – Dominates the ‘Quality’ end over most sectors of the AHTS (below 12240 BHP). Now a minor PSV player. Well thought out newbuild strategy.

Maersk – Charges along at over 16,000 BHP AHTS’s with a smattering of PSV’s. The ‘Anchor handler’ of Choice in Asia – availability tight

Traditional Owners…..(cont)


Traditional Owners ….(cont)

Bourbon – all aghast at the size and scale of their newbuild investment. Across the board, a self confessed growth plan by 2010 that will see;

Farstad – Transitioned the P&O acquisition well. Huge growth in Australia with specific client focus


Traditional Owners ….(cont)

Chuan Hup – Corporate high jinx with structure. Building a ruck of high end equipment in Japan. Not afraid to sell or enter new markets (Australia).

Smit – has arisen from the ashes with high end newbuilds plus acquisition of Hadi newbuilds.

Nomis – Solid, steady growth in Asia with newbuilds now a part of the mix.

PRM – Owner / operator now Nav Arch and Builder


The new kids on the block…..

Ezra – Has to be top of the list. Phenomenal across the board growth, quality, young and diverse fleet. Young aggressive management.

NOR – In Partnership with Solstad offering a Niche service of high end new vessels tailored more to the ‘added value’ sector.

PACC – Havila – The Norwegians making their mark with strong regional business powerhouse – one to watch.


The new kids on the block…..

Sanko – In collaboration with Robert Knudsen. Sanko have decided ‘this time around’ they wish to be an operator. Expect to see up to 40 vessels by 2010.

Deep Sea Supply – Big Norwegian powerhouse…the first ships are here.

And…..

Eastern Navigation, Miclyn, Strato, Swiber, Swissco, ASL and Sealink are all becoming players in the OSV sector


Finally…..

….We have all seen the Pzzaz surrounding the ‘X’ Bow,

Attached in action.


Documents

20070201 - Asian Workboat OSV Forum - February 2007, Singapore