Swire Pacific Offshore (SPO) reported very positive results in their mid-year financial report today.
The Hong Kong-listed offshore supply vessel operator notes their profits are up 71 percent to HK$679 million over last year’s figures. This increase can be partially attributed to increased charter rates received by SPOs new, specialized vessels which have been added to their fleet since 2012. SPO notes their charter revenue increased by 30% to HK$2,412 million in the first half of 2013.
Since January 1, SPO notes that although no new ships were ordered, four new vessels were delivered, consisting of two large Anchor Handling Tug Supply vessels, one large Platform Supply Vessel and one accommodation barge. The two Windfarm Installation Vessels delivered in 2012 began operating in Europe and four older vessels were sold in the first half of 2013, in line with SPO’s strategy of phasing out its older tonnage.
SPO adds that two large newbuild PSVs, which were due to be delivered in 2014, are now expected to be delivered in 2015. No reason was given for the delay however.
SPO notes that average charter hire rates rose 30% to USD25,100 per day. Average charter hire rates for the core fleet were USD19,500 per day, an increase of 7%. The Construction and Specialist Vessels (CSV) fleet’s average charter hire rates rose 67% to USD91,000 per day.
Non-charter hire income increased by 17% to HK$465 million in the first half of 2013. This reflected liquidated damages for the late delivery of vessels, revenue from Inspection, Maintenance and Repair (IMR) vessels for subsea project work and additional revenue from Altus Logistics.
SPO notes that they are “optimistic about the market for offshore support vessels.” and in particular, they view an increase in demand for larger and more sophisticated vessels throughout the rest of 2013.