Pareto Offshoreinvest AS - Pareto Project Finance

Supply market
A stronger oil price and more stable macro environment
has increased the confidence in the supply and subsea markets
as well. The spot market has shown strong development
the past period and recently we have seen PSV rates
of about 250,000 NOK/day. In comparison, average rates
the last 3 years have been 200,000 NOK per day.
The increase in rig activity will result in a higher
demand for supply vessels, and the floating rig fleet is set
to grow by 45 % by 2013. The high number of upcoming
pipe-laying projects will further increase the need for supply
vessels, and the currently known pipe-laying projects
until 2016 could tie up 50–60 vessel years for pipe carrying
PSVs.
The supply vessel fleet is also set for growth due to the
relatively large number of newbuildings on order. This is
no new phenomenon as the “North Sea” PSV and AHTS
fleet has grown by an average of 13 % per year since 1998.
This growth have been absorbed by the market so far, and
if we take into account that when “deleting” all vessels
above 25 years of age the supply fleet is set to experience
an almost stand still the next years. This and the increased
activity related to rig activity and pipe-laying should give
good reason to be optimistic for supply owners.
Subsea
We have also continued to see increased subsea tendering
activity worldwide. However, for shorter-term SURF
(Subsea Umbilicals, Risers & Flowlines) work, particularly
in the UK North Sea and the Gulf of Mexico,
the pricing environment remains competitive. In the
Conventional market in West Africa this year activity
has increased and we expect this market to continue to
remain strong in the short and medium-term. Many subsea
contracts were postponed during 2009 and these contracts
are expected to come to market award during 2010
and 2011.
The current SURF contracts will eventually move into
the offshore installation phase which is expected to commence
beyond 2011. One of the major players in subsea,
Acergy, expects that the trend will be for SURF projects
to continue to increase in size and complexity which will
contribute to substantial industry growth in the mediumterm.
Owners of modern high quality assets will be well positioned
to capture these future growth opportunities.
Seismic market
The seismic market has turned a corner from the trough
seen last year. With increased demand on higher E&P
spending and general emphasis on resource expansion,
coupled with limited fleet growth, the market balance is
now looking far better than last year.
In the short term, The Deepwater Horizon incident
has however created uncertainty around how many
seismic vessels which could potentially be leaving the
Gulf of Mexico creating a tougher competition amongst
the seismic players in the rest of the world. This will be
highly dependant on how long the drilling moratorium
will last.
The long term view for seismic services are positive
and we expect activity to increase in 2H 2010 and the
beginning of 2011, however there have been no signs of
increased profitability for seismic owners so far and we
may have to wait until we se 2H 2011 before any increase
in seismic rates are seen.
Definisjoner
I denne kvartalsrapporten har nedenstående utrykk følgende
betydning, med mindre annet er direkte uttalt eller
fremgår av sammenheng. De nedenstående definisjonene
gjelder også for de foregående sidene i denne kvartalsrapporten.
Definisjoner:
Fondet Pareto World Wide Offshoreinvest AS
VEK Verdijustert egenkapital
PPF Pareto Project Finance AS
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Det understrekes også at avkastningen/kursutviklingen kan variere som følge av svingninger i valutakursene. Vi gjør oppmerksom på at i dagens urolige
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beskrevet i prospektet (Informasjonsmemorandum) utarbeidet i forbindelse med emisjoner i Fondet.