British authorities, for the second time, voice concerns about the merger between Prosafe and Floatel, which they believe could harm competition in the market for accommodation rig leasing in the North Sea.
Oil companies are sending positive signals as they seem poised to spend more money, says Prosafe's CEO. He believes in brighter days ahead for the leasing of accommodation rigs – but it will be a long journey, says the Dane with a professional past at J. Lauritzen.
Revenue tumbles while operations dip into the red for Prosafe. However, there are signs of improvement for accommodation rigs, also called flotels, which could begin as early as next year, projects the company.
Accommodation rig company Prosafe experienced low utilization rates in 2016 and only realized a profit due to a restructuring of the company. The bottom of the rough market will be reached next year, according to the company.
Jesper Kragh Andresen will take over as new CEO of Prosafe, which owns the world's largest fleet of accommodation vessels for the oil sector. He previously headed Lauritzen's offshore company Axis Offshore, which was acquired by Prosafe in early January.
Axis Offshore will be merged with Norway's Prosafe – and J. Lauritzen will thus go from being an active player in the offshore sector to serving merely as a financial investor. The downturn in the oil- and gas market makes the merger the only right move, Axis CEO Jesper Kragh Andresen tells ShippingWatch.
Axis Offshore, in which J. Lauritzen recently sold its stake to the carrier's owner, Lauritzen Fonden, has again postponed delivery of the company's two hotel vessels from Chinese Cosco, according to Axis' latest financial report to the Oslo Stock Exchange.