Deep Sea Supply looks to add PSV newbuilds

AUGUST 15, 2013 — Cyprus based offshore service vessel operator Deep Sea Supply (Oslo: DSS) said today that it is in discussions with a company affiliated with its largest shareholder, John Fredriksen’s Hemen Holding, to buy up to 10 PSV newbuilds. It said that this expansion is planned to be financed by existing cash, senior bank debt, seller’s credit and with limited or no use of new equity.

DSS platform supply vessel

It says that increased activity, both in established and new markets, continues to drive demand for large and modern OSVs, and Deep Sea Supply’s fleet of cost efficient vessels is well positioned to take part of this development.

Deep Sea Supply reported consolidated revenues of $37.8 million in second quarter 2013, compared with $28.3 million in the same quarter last year. The company booked a gain on sale of $82.6 million, of which $81.6 million related to the sale of 50% of its Brazilian business. In that deal, the company sold 50% of its Brazilian business (15 vessels) and purchased six newbuildings together with its new Brazilian partner BTG Pactual. The new company, Deep Sea Supply BTG, will own a fleet of 21 vessels and be one of the largest OSV owners in Brazil.