General – Sale of PSV Fleet
Solstad Offshore have today signed an agreement with U.S. based Tidewater for the sale of 37 platform supply vessels.
The total cash consideration payable for the PSV Fleet is approximately USD 577 million.
“The sale of the PSVs represents a shift in our strategy in a changing market. The PSVs mainly support the oil and gas industry, while the AHTSs and CSVs can service all offshore energy sectors, including oil and gas and renewables. This move is therefore in line with our strategy of being a key enabler in the energy transition. Further, the transaction will give Solstad greater financial leeway and a significantly improved debt and cash position going forward,” says Lars Peder Solstad, CEO of Solstad Offshore.
After the transaction has been completed, Solstad’s fleet in operation will consist of 41 high-end offshore vessels. In addition, six vessels are non-operational and considered to be sold.
Solstad’s fleet will continue to support clients that operate in the offshore energy sector. Both offshore renewables and oil and gas are predicted to see significant investments in the coming years.
Ongoing charter parties will, subject to the necessary consents from the charterer, be transferred/novated to Tidewater. Absent such consents in time for completion of the Transaction, the economic interest in the charter party will be transferred to Tidewater and until the necessary consents are given or the charter party expires. Solstad will offer management services to Tidewater in a transition period to facilitate a smooth transfer for the parties and the customers.
Completion of the Transaction is contingent on third party approvals such as certain charterers and competition authorities, buyers financing and fulfilment of conditions precedent. The Parties may abandon the Transaction if it is not completed within the longstop date of 30 June 2023.