DOF strengthens its position in the growing subsea market with two advanced construction support vessels newbuilds while unlocking capital through the sale of four PSVs
DOF Group is continuing its fleet optimisation strategy with the sale of four platform supply vessels (PSVs) and the acquisition of two new construction support vessels (CSVs) with 250t cranes, that are currently under construction strengthening its position in the global subsea market while increasing the long-term earnings potential of its fleet.
The combined transactions involve six vessels and form part of the company’s ongoing fleet high-grading programme. DOF said the changes will enhance fleet capability and longevity without affecting its leverage target of 1.5–2.0x or its ability to deliver near-term shareholder returns.
The company also confirmed it has declared a constructive total loss on the anchor handling tug supply (AHTS) vessel Skandi Amazonas following an incident in May.
Sale of four PSVs
The four PSVs Skandi Mongstad (2008-built), Skandi Flora (2009), Skandi Feistein (2011) and Skandi Kvitsøy (2012) have been agreed sold. Expected delivery of the four vessels is during Q3 of 2026. The vessels will continue on their current contracts. DOF will retain management responsibilities of the four vessels and a minority ownership interest in the acquiring entity. The sale will generate approximately USD 50 million in net cash proceeds following repayment of debt related to the vessels.
Acquisition of two CSVs
DOF has entered into an agreement with a company affiliated with Geveran Trading Company to acquire two CSVs currently under construction. The vessels are based on the SALT 310 OCV design and are being built by PaxOcean in China. Specification highlights include a 250t subsea crane, 1750 square meters of deck space, overall length of 123 meters, breadth of 25 meters and POB capacity of 123. Each vessel will be equipped with two work-class ROVs.
The vessels will contribute with capacity in the mid-sized CSV segment to DOF’s global subsea organisation. The vessels’ capabilities make them suitable for a range of projects closely aligned with DOF’s core business areas, including inspection, maintenance and repair (IMR), field support and subsea construction services. DOF continues to experience a strong market and high tendering activity within these segments and currently sees several concrete opportunities to deploy the two vessels with attractive financial return. The exact scope of work for the vessels will be decided closer to delivery based on the overall DOF fleet composition and contract situation at that time.
The vessels are expected to be delivered in Q4 2027 and Q1 2028. 85% of the purchase price will be paid at delivery. The acquisition will be funded through a mix of cash from vessel sales and available debt financing.
Mons S. Aase, CEO DOF Group ASA, comments: “The transactions follow DOF’s strategy of high-grading the fleet across vessel segments. Over the past year, including these transactions, DOF has sold nine vessels that have been of lower capabilities or otherwise not suited 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 are able to generate attractive earnings on their own while also increasing the subsea regions’ earnings capacity with no additional investment. That is really the key to our ongoing fleet high-grading; being able to make more money on a more modern fleet while balancing the net spending and therefore not impacting the short-term shareholder return capacity while increasing the long-term potential of DOF. I am therefore very happy to be able to announce these transactions, and I look forward to welcoming the new vessels to our fleet once construction has been finalised.”
