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The state Garantiinstituttet for eksportkreditt, or Giek, is one of the largest creditors in the offshore.
Offshorerederiene has worn heavily after oljeprisfallet from 2014 to 2016. After several years of downturn,, the market began to pick up somewhat in 2019. Then came the koronakrisen and a sharp fall in oil prices.
the team leader for the offshore, oil and gas in Giek, Vibeke Stray, call the current situation a triple crisis.
There are practical challenges with the operation of the ship and moving the crew because of the korona-restrictions, oljeprisfallet puts shipping contracts with oil companies under pressure and kronesvekkelsen has given many companies acute liquidity problems.
also Read: we Believe we are weeks away from the bankruptcies in the offshore
High debt
But offshorerederiene have had major challenges long before koronakrisen. At the forefront of the oil crisis in 2014, it was built a lot of vessels and equipment.
“Giek offered funding to offshorerederiene to ensure that the construction of new ships and equipment went to the Norwegian shipyards and suppliers,” says Stray.
But it also led to that the debt of the shipping companies grew. In the last five years, there has been a need for avdragsutsettelser in rederienes debt, according to Giek.
– Here has been a greater ryddejobb over a long time, where it has been necessary to reduce the number of ships in the fleet, as well as to reduce indebtedness. In this sector has Covid 19 and oljeprisfallet made the situation very acute. Any contribution from Giek here will be a part of the to minimize the total loss in the longer term.
She believes, however, it is important that one ensures that the industry survives.
– It is necessary to avoid bankruptcy in the current situation. Bankruptcy will mean the loss of jobs and contracts for the vessels which are still in activity. This is not the time to send companies and jobs in the probate court.
Take the criticism
at the same time admits Stray that Giek has been too generous with the funding of the companies in this industry. It was the imf which first publicized selvkritikken.
– Both the owners, the banks and GIEK have to take the criticism that we helped to build up a large offshore fleet, which proved to be vulnerable to the big drop in oil prices in 2014. At the same time, it was important after the financial crisis in 2008 to ensure that the Norwegian shipyards and subcontractors got the most byggeoppdrag in competition with foreign companies, ” she says.
– Have you funded companies in this industry that do not necessarily have to have been viable in the long term?
– Each company and individual ships that we funded was thoroughly a credit rating of Giek. It is the sum of the companies and ships that was the problem over time. In 2013 we began to tighten in an attempt to slow down the construction, but had at the same time relate to the fact that our industry needed more new missions.
– most Importantly, to save jobs
prime Minister Erna Solberg and finance minister Jan Tore Sanner has been clear on that “healthy” or viable businesses to get the support of the government’s krisepakker.
There is still a broad political consensus to take care of the maritime industries. Ap-leder Jonas Gahr Støre says to NRK that it is crucial to take care of this business going forward.
These companies are sitting on valuable expertise that can be crucial for the green fremtidsnæringer in offshore wind and electrification within the uk.
WILL ENTER offshore wind power: Offshore want to be a part of the government’s commitment to offshore wind. So far, offshore wind power depending on your major, state subisider.
Photo: Jan Arne Violence / Equinor / Jan Arne Violence / Equinor
Frp-politician Jon Georg Dale believes it is necessary to ensure that the major industribedriftene not go over the end.
The most important thing now is to save jobs. It to rescue companies within verfts and industry, is a part of this.
Working with parcels
In a study that Rederiforbundet has conducted among its members shows that the offshore service shipping companies expect a omsetningsfall of around 25 per cent, while the riggselskapene expect a decline in turnover of 30 per cent.
Two of the three offshore service shipping companies state that it may be necessary to lay off employees.
the confederation of Norwegian enterprise boss Ole Erik Almlid says that efforts are being made with own packages on oil and gas, the supply industry and the shipyards, to ensure that viable shipping companies and shipyards survive.
– to ensure that this industry is to survive, must avskrivningsreglene be changed so that the appetite for investment increases. The government has delivered now three krisepakker to the Norwegian business sector in order to remedy the dramatic impact koronakrisen have for the Norwegian economy, businesses and jobs. But to date the industry has received little boost, ” he says.
WANT to SAVE JOBS: the confederation of Norwegian enterprise boss Ole Erik Almlid working with their own support packages for companies within the oil and gas to ensure that viable companies survive.
Photo: Terje Pedersen
– the Norwegian supplier industry is to survive, must the wheels be kept in the time of the major industriaktørene who purchase the services of the smaller suppliers. With an oil price which were falling even before the crisis, the appetite for investments in the oil industry is almost absent when koronakrisen comes on top, says Almlid.
Rescued until further notice
the shipping Company Solstad Offshore has struggled with a huge debt the last few years. This week came the crisis-hit company agreed with the lenders that insures them until further notice.
the Managing director Lars Peder Solstad, says to NRK that they now have a month to agree with a binding agreement.
WANT a GREEN MISSION: the Managing director Lars Peder Solstad in Solstad Offshore looking for more projects in offshore wind.
Photo: Frode Berg / NRK
– does it Mean that the group is saved from bankruptcy?
the Industry that we are in, and everyone who works on offshore, has had tough times. Nonetheless, there has been too much debt in companies in the us that have had a gjeldsnivå not have been in the style for how the markets have been, ” says managing director Lars Peder Solstad and add:
– Thus we have had a negotiation with our lenders around it. We have come to the consensus that the solution that is on the table, which also involves reduced the debt that is the best for the company going forward.
Dispose of ships
analysis supervisor Erik Keg Clarksons Platou believe offshore is going to get a steep and rapid downturn as a result of challenges related to koronaviruset, and cuts in investments and operating expenses in the oil companies.
– We expect that the number of boats in circulation will increase in line with the generally lower activity in the north Sea with fewer rigs operating offshore.
WAITING SEVERAL SHIPS IN the CIRCULATION: analysis supervisor Erik Keg Clarksons Platou says the rates for offshorebåtene now located under operating expenses.
Photo: press photo / Clarkson Platou
today, there are approximately 330 offshore servicebåter in the north Sea. Of them is around 70 vessels in the circulation. Barrel think the number of ships in circulation will increase sharply forward as the activity goes down.
the Development has been very negative for the owners the last few weeks and the rates for short contracts is, today, more than halved from what we saw for only a few weeks ago. The rates are far below the operating costs which means that the owners lose money for each trip. And we think it will be worse to come.
HOPE for BETTER TIMES: Solstad Offshore has been gjeldstynget in several years. The company in which Kjell Inge Røkke and John Fredriksen are in as owners had to deal with the creditors in the middle of the koronakrisen. Now acknowledge the shipping company with several of the ships.
Photo: Thomas Halleland / NRK More about koronaviruset StatusRåd and infoSiste nyttSpør NRK
