Marking Exit From The PSV Segment, Solstad Announces Sale Of Its PSV Vessel Fleet To Tidewater For Approximately $577 Million

The PSV vessel fleet of the company is formed by 37 ships, which will now be operated by Tidewater. The sale transaction of Solstad marked its exit from the PSV operations segment in the global maritime market.

The Norwegian offshore company Solstad is exiting the PSV operations segment in the global maritime market. For a value of US$ 577 million, the company finalized the sale of its entire fleet of 37 PSV vessels to Tidewater. The fleet has a total order backlog of approximately $620 million. The Norwegian transaction significantly reduced its debt of US$ 574.8 million.

Solstad Sells Its PSV Vessel Fleet to Tidewater for US$ 577 Million and Eases Its Debt of US$ 574.8 Million

The Norwegian offshore operations company Solstad made a bold transaction in the global market last week.

It announced the sale of its PSV vessel fleet to the company Tidewater, for a total value of US$ 577 million. The fleet consists of 37 vessels, all currently operating worldwide, primarily in the North Sea, but also in Brazil, Australia, and West Africa.

Currently, the company’s fleet has a total order backlog of approximately $620 million, with strong expectations of growth in value over the next few years.

The sale of its PSV fleet marked Solstad’s exit from the PSV segment in global maritime operations. While it may seem like a bold move, the transaction with Tidewater will contribute to the next steps for the Norwegian company.

This strategic move reduces Solstad’s debt by approximately NOK 6 billion (about US$ 574.8 million) and significantly strengthens its balance sheet. Meanwhile, the expectation is that the company’s exit from the PSV sector will reduce its capex program in 2023 and 2024.

With the completion of the transaction with Tidewater for the sale of the PSV vessels, Solstad’s fleet will consist of 41 high-standard offshore vessels, in addition to six non-operational vessels considered for sale.

Company Strengthens Its Strategic Position in the Global Offshore Market After Selling Its PSV Vessel Fleet to Tidewater

Lars Peder Solstad, CEO of Solstad Offshore, emphasized that the sale of its PSV fleet to Tidewater strengthens its strategic position in the global market for the coming years.

“The sale of the PSVs represents a shift in our strategy in a transforming market. The PSVs primarily support the oil and gas industry, while AHTSs and CSVs can cater to all sectors of offshore energy, including oil and gas and renewables,” he said.

The expert stated that the company will continue in the global offshore market, acting as a facilitator of energy transition projects worldwide.

“After the transaction, the core competence of the future Solstad will be even better applied to further develop the CSV and AHTS segments, including building our service division and capitalizing on a stronger position in the renewable energy market,” concluded the CEO.

Although it has already been agreed with Tidewater, the closing of the sale transaction is still subject to regular regulatory approvals and includes a financing contingency.

Solstad expects that the sale of its PSV vessel fleet to Tidewater will be finalized by the second quarter of this year.