Mark Adeosun, author of the fifth edition of the “World Subsea Vessel Operations Market Forecast,” said: “Low hydrocarbon prices coupled with vessel oversupply will result in low utilization, impacting expenditure over the forecast period. Despite these near-term concerns, subsea vessel demand is set to recover towards the end of the forecast period.
“As a result of the continued challenging market conditions, subsea vessel providers have been taking additional measures to help strengthen their financial position and stem oversupply in the market by deferring the delivery program of newly built vessels. We believe that it is unlikely that day rates have bottomed out.
“Across the global subsea vessel fleet, a 2014-15 decline of at least 30% in day rates is not unlikely before prices stabilize. However, many tier one contractors are joining forces to ensure utilization and maintain track record.”
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