February 07, 2017

Farstad Shipping advised that it has concluded a fully-funded restructuring plan that will see the company, together with Deep Sea Supply, consolidate under Solstad Offshore to create a world class offshore supply vessel company. As repeatedly expressed by a range of industry experts, the fragmented Norwegian OSV industry requires consolidation.
A successful completion of the merge will create the largest company in the high-end PSVs over 3,200 dwt, AHTS with more than 15,000 bhp, all CSVs global offshore supply vessel industry with a fleet of 154 vessels. When including all vessel classes and lower spec vessels, the company ranks fourth globally. The company will operate a fleet of 33 CSV, 66 PSV and 55 AHTS vessels deployed globally in all deep water hubs. It is proposed that Solstad Offshore will be the parent company in the consolidated group, and will have support of two of the strongest participants in the shipping and offshore sector through Hemen and Aker. The new consolidated group, “Solstad Farstad”, will build on the complementary strengths of the three companies, combining the existing Solstad Offshore’s CSV capabilities with Farstad Shipping’s AHTS experience, international presence and good, long-standing position in Brazil and Australia, together with Deep Sea Supply’s cost efficient PSV operating model. The Combination will enable realization of substantial cost and revenue synergies in the range of NOK 400-650 mln annually that will further contribute to strengthen the combined company.
Lars Peder Solstad will be proposed as the Chief Executive Officer of the combined company, which will be headquartered out of Skudeneshavn, Norway. (Source: Farstad Shipping)