Norwegian offshore vessel owner DOF has unveiled a series of fleet changes encompassing vessel sales, newbuild acquisitions, and an insurance settlement following the constructive total loss of the Skandi Amazonas.

The company has agreed to divest four platform supply vessels (PSVs) — Skandi Mongstad, Skandi Flora, Skandi Feistein, and Skandi Kvitsøy — while simultaneously acquiring two construction support vessels (CSVs) currently under construction in China. PSVs are primarily used to transport supplies to offshore installations, while CSVs are typically deployed on subsea project work where cranes, deck capacity, accommodation, and ROV capability can support higher-value offshore operations. DOF described the transactions as part of its fleet high-grading programme, aimed at increasing earnings capacity without breaching its target leverage range of 1.5x to 2.0x net interest-bearing debt to EBITDA.

PSV Divestment Details

The four PSVs are scheduled for handover in the third quarter of 2026 and will remain on their existing contracts until delivery. DOF will continue managing the vessels and retain a minority equity stake in the acquiring entity. The sale is projected to generate approximately $50m in net cash after the repayment of debt associated with the vessels.

CSV Newbuild Acquisitions

On the acquisition side, DOF has agreed to purchase two mid-sized CSVs from a company linked to Geveran Trading Company. The vessels are under construction at PaxOcean's shipyard in China, built to the SALT 310 OCV design. Each vessel will be equipped with a 250-tonne subsea crane, 1,750 square metres of deck space, accommodation for 123 personnel, and two work-class remotely operated vehicles (ROVs).

Deliveries are scheduled for the fourth quarter of 2027 and the first quarter of 2028, with 85% of the purchase price payable upon delivery. The back-ended payment structure means most of the purchase price falls due when the vessels are delivered, aligning the largest cash outflow with the point at which the assets enter the fleet.

DOF stated that the newbuilds will bolster its subsea operations across inspection, maintenance and repair (IMR), field support, and subsea construction. The company noted that market conditions remain robust, characterised by elevated tender activity and multiple deployment opportunities for the vessels upon arrival.

CEO Commentary

Mons S. Aase, CEO of DOF, said: "Over the past year, including these transactions, DOF has sold nine vessels that have been of lower capabilities or otherwise not suited to DOF's fleet and acquired four higher-end vessels. The higher-end vessels provide our subsea regions with a larger fleet to execute projects and earn money on. On a simple PSV, we have limited opportunities to make additional returns on top of the vessel's earnings, while the new CSVs will provide us with additional vessels that can generate attractive earnings on their own while also increasing the subsea regions' earnings capacity with no additional investment."

Skandi Amazonas Constructive Total Loss

In a separate matter, DOF declared a constructive total loss on the anchor handling tug supply (AHTS) vessel Skandi Amazonas following its grounding in May near Macaé, Brazil. The incident caused hull damage and water ingress, leading the company to determine that rebuilding costs would exceed the vessel's insured value. The declaration triggers a $115m hull and machinery insurance payout. In marine insurance, a constructive total loss is generally declared when the cost of recovery or repair is uneconomic relative to the insured value, rather than when a vessel is physically destroyed.

Source: Splash247