Deep Sea Supply Considers Order for 10 New PSVs

sea tiger deep sea supply psv
Sea Tiger, image (c) Deep Sea Supply

Deep Sea Supply, a Cyprus-based offshore supply vessel operator, announced in an exchange filing today plans to potentially order up to 10 new platform supply vessels. They note that discussions surrounding the deal are currently underway with PSV Holding Inc, a company affiliated with Hemen Holding.

For Deep Sea Supply, they appear ripe for expansion considering a very solid 1H 2013 and the sell-off of a 50% stake in their Brazilian business on 31 May which resulted in a profit of USD $84.1 million. On top of that, their fleet operating revenues were up nearly $10 million to $37.8 million as compared to the same period in 2012.

For the first half of 2013, Deep Sea Supply’s consolidated revenues were up 233 percent to USD $76.5 million, and EBITDA increased from USD $16.8 million to USD $116.2 million as compared to 2012.

With the sell-off of their Brazilian business, Deep Sea Supply notes they purchased 6 newbuildings together with its new Brazilian partner BTG Pactual (BTG). The new company, Deep Sea Supply BTG, will own a fleet of 21 vessels and be one of the largest OSV owners in Brazil.

Deep Sea Supply adds that their fleet expansion is planned to be financed by existing cash, senior bank debt, seller’s credit and with limited or no use of new equity.