ESVAGT is a leading provider of emergency rescue and response vessels and related services to the offshore energy industry in and around the North Sea and the Barents Sea.
The market conditions in which ESVAGT operates remain challenging. The low oil price environment has reduced production profitability and is negatively impacting exploration investment in the North Sea, leading to a reduced utilisation rate for ESVAGT’s vessels. In this context, we have continued to focus on the cost base and increasing ESVAGT’s market share in the UK. We have also seen some improvements in the supply dynamics as competitors are retiring off-contract, older tonnage.
ESVAGT has maintained its position as a Service Operations Vessel (“SOV”) market leader and has recently announced a new contract with MHI Vestas. The pipeline of new opportunities continues to grow and ESVAGT is currently shortlisted amongst the final bidders for two ongoing tenders. This may lead to an equity injection from shareholders to fund the construction of new vessels.