AHTS Market Report

Offshore Market

AHTS & PSV Market Overview

Fleet status as per 2 January 2015

Source: IHS MarineBase & Maersk Broker Research

2

Outline

Analysis on Oil Market 2H, 2014

AHTS / PSV Supply Dynamics Analysis

Concluding Remarks

AHTS/ PSV fleet profile

Fleet overview

Age distribustion

Geographical distribution

Fleet activity in main regions

Top 20 owners

Fleet growth forecast

AHTS/ PSV market profile

Orderbook

Delivery

Scrapping

Newbuilding, second-hand market

Steel Price

Analysis on Oil Market 2H 2014

4

45

50

55

60

65

70

75

80

85

90

95

100

105

110

115

120

US

D/

barrel

Brent Dated, FOB Sullom Voe, Close WTI, Light Crude Spot, NYMEX

Oil Price Review-2H 2014

The average Brent in 1H was USD 109 per barrel and USD 89 in 2H, dropping by 18% in 2H.

The average of Brent in Q4 was USD 76 per barrel, down 25% from Q3.

The average of WTI in 1H was USD 101 per barrel and USD 85 per barrel in 2H, down 16%.

The average of WTI in Q4 was USD 73 per barrel, down 26% from Q3.

Then to drop to USD 40 level early 2015.

5

Oil Price Forecast

EIA

(Unit: USD per barrel, from Short-term Energy Outlook, released by EIA in January,2015)

IMF Crude oil, USD/barrel Avg. spot price (Brent, Dubai, WTI)

(Source: IMF Commodity Price Forecasts, January 2015)

2015 2016

WTI Crude Oil 54.58 71.00

Brent Crude Oil 57.58 75.00

2015 2016 2017 2018 2019 2020

Spot Crude 56.7 63.9 68 70.9 72.1 72.6

6

13 Q1 13 Q2 13 Q3 13 Q4 2013 14 Q1 14 Q2 14 Q3 14 Q4 2014 15 Q1 15 Q2 15 Q3 15 Q4 2015

Africa 3.9 3.9 3.7 3.8 3.8 3.9 3.9 3.8 4 3.9 4.1 4.1 4 4.2 4.1

Americas 30.2 30.5 31.1 31.1 30.7 30.4 30.4 31.1 31.3 30.8 30.6 30.7 31.3 31.5 31

Asia/Pacific 30.7 29.8 29.8 30.9 30.3 31.2 30.1 29.9 31.2 30.6 31.6 30.6 30.7 31.8 31.2

Europe 13.8 14.5 14.6 14.2 14.3 13.7 14.1 14.6 14.2 14.1 13.8 14.1 14.4 14.1 14.1

FSU 4.5 4.6 4.9 4.9 4.7 4.6 4.8 5 4.9 4.8 4.5 4.6 4.8 4.7 4.6

Middle East 7.5 7.9 8.4 7.7 7.9 7.8 8.2 8.6 7.8 8.1 7.9 8.4 8.8 8.2 8.3

World 90.6 91.2 92.5 92.8 91.8 91.6 91.6 93.3 93.9 92.6 92.5 92.5 94 94.4 93.3

Annual Chg(%) 1.3 1.7 1.6 0.9 1.4 1.2 0.3 0.6 0.8 0.7 1 1.1 0.9 0.9 1

Annual Chg(mb/d) 1.1 1.5 1.5 0.8 1.2 1.1 0.3 0.6 0.7 0.7 0.9 1 0.9 0.9 0.9

Decreased Global Oil Demand Growth(2013-2015)

The outlook for global oil demand growth for 2015 has been cut by 230 kb/d to 0.9 mb/d on

lower expectations for the FSU and other oilexporting countries.

Sharply lower oil prices since midJune have, to date, led to little positive impact on global oil

product demand.

The Russian forecast has been hit particularly hard by the market selloff, with the forecast for

2015 revised down by 195 kb/d, to 3.4 mb/d. The impact of economic sanctions and uncertainty

over Russias policy towards Ukraine will likely aggravate price effects.

Source:IEA, Oil Market Report, published in December 2014

Unit: Milion barrels per day

7

-3

-2

-1

0

1

2

3

4

5

76

78

80

82

84

86

88

90

92

94

96

Million

barrels

per d

ay (

MM

bb

l/d

)

Implied Stock and Balance( right axis ) World Production World Consumption

World Liquid Fuels Production and Consumption

Source: EIA, Short-Term Energy Outlook, December 2014

Forecast

8

World Crude Oil Proved Reserves(Billon barrels)

Source: EIA, December 2014

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

10

15

20

25

30

35

40

45

Reserv

es:

Bil

lion

Barr

els

Pro

du

cti

on

: B

illion

Barr

els

Per

Year

Production of Crude Oil including Lease Condensate (Billion Barrels Per Year)

World Crude Oil Proved Reserves (Billion Barrels)

1990 2000 2013

Production of Crude Oil including

Lease Condensate

(Billion Barrels Per Year)

22.1 25 27.8

World Crude Oil Proved Reserves

(Billion Barrels)1000.5 1016.8 1646.0

Number of Years Production 45.3 40.7 59.2

9

E&P Reduction

2013 2014E 2015F 2013-2014 % 2014-2015 %

Middle East 34,777 40,180 46,000 15.50% 14.5%

latin America 74,137 78,671 74,934 6.10% -4.7%

Russia/FSU 48,317 51,348 44,606 6.30% -13.1%

India, Asia and Australia 108,534 112,499 105,735 3.70% -6.0%

Europe 46,014 45,921 38,248 -0.20% -16.7%

Africa 24,225 26,286 27,725 8.50% 5.5%

Majors(International) 104,946 104,813 94,640 -0.10% -9.7%

NAM Independents(International) 17,435 18,565 14,120 6.50% -23.9%

Other(International) 4,581 5,161 5,041 12.70% -2.3%

Total International Spending 462,966 483,444 451,049 4.40% -6.7%

International Capital Spending by Regions( USD mn)

Source: Baker Hughes

E&P spending by major oil company

Source: Financial Times, January 29,2015

Shell, will cut its capital spending by $15bn over 2015-17. 40% projects will be delayed or

cancelled.

Total, announced to reduce group-wide capital spending by 10% this year and speed up billions

of dollars in asset disposals.

Conoco, planned 33% cut in its capital spending this year to $11.5bn, $2bn less than it had

suggested in December 2014.

Occidental Petroleum, announced 33% cut of spending of 2015.

http://markets.ft.com/tearsheets/performance.asp?s=fr:FP

10

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

Rig

Uti

lati

on

Rate

West Africa Middle East Asia/Australia (excludes India)

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

105.0%

110.0%

Rig

Utilatio

n R

ate

U.S. Gulf of Mexico South America Europe/Mediterranean Sea

Falling Rig Utilization Rates

Rig utilization in Gulf of Mexico decreased by 19% from the beginning of 2014

Rig utilization in West Africa decreased by 14% from the beginning of 2014

11

Rig/OSV Utilization Rates

West Africa

Utilization Rate Trend

Rig 85.3%

AHTS 90.0%

PSV 96.7%

South America


Rig 99.4%

AHTS 97.8%

PSV 96.3%

US Gulf of Mexico


Rig 81.3%

AHTS 80.7%

PSV 91.0%

World Total


Rig 90.9%

AHTS 87.9%

PSV 93.3%

NW Europe/North Sea


Rig 97.5%

AHTS 96.6%

PSV 99.0%

Middle East


Rig 90.5%

AHTS 93.1%

PSV 94.8%

Asia/Australia


Rig 85.2%

AHTS 96.9%

PSV 75.8%

*The arrows indicate the change of utilization rate from last quarter. ** Since Oct2013 IHS Petrodata started using marketed supply to replace total supply to calculate rig utilization rates, hence the rates are in general higher than preivously reported. Note: Vessels with the avtivity status cold stacked, idle and other work (out of market) are seen as unemployed n the utilization rate calculation.

Including spot vessels

12

Summary and Conclusion for Oil Market

Oil price fell surprisingly in strength.

Weaker than expected economic growth, especially in the EU , Japan and China,

continue as a driver for weak oil consumption. Increased capital discipline at oil

companies, cost-cutting measures and scaled-back spending for E&P all bring

more negative outlook.

Spending cuts providing quick spill over in decreased activities.

Forecast on oil prices turn around very uncertain-next 3 months likely to give

stronger indication of direction.

Price fall only partly driven by demand, more by supply and politics.

AHTS/PSV Supply Dynamics Analysis

AHTS

AHTS Fleet Profile

Fleet overview

Age distribution



Top 20 owners


14

15

AHTS-Fleet Overview

< 4,999 BHP5,000-6,999

BHP

7,000-9,999

BHP

10,000-

14,999 BHP

15,000-

17,999 BHP>18,000 BHP Total Trend

Current Fleet 211 657 433 267 124 118 1,810

Orderbook 4 64 20 41 7 15 151

Orderbook as a %

of the Fleet1.9% 9.7% 4.6% 15.4% 5.6% 12.7% 8.3%

Idle Vessels 21 65 41 17 5 5 154

Idle as a % of the

Fleet10.0% 9.9% 9.5% 6.4% 4.0% 4.2% 8.5%

2014 Delivered 3 36 13 3 2 10 67

2015 to be

Delivered 4 53 15 31 6 9 118

15 AHTS were removed from service compared with Q3, 2014

9 more new orders compared with Q3, 2014

16

< 4,999

BHP

5,000-

6,999 BHP

7,000-

9,999 BHP

10,000-

14,999 BHP

15,000-

17,999 BHP

>18,000

BHPTotal

2004 year-end 213 184 225 109 48 42 821

Current Fleet 211 657 433 267 124 118 1,810

Growth % -0.9% 257.1% 92.4% 145.0% 158.3% 181.0% 120.5%

< 4,999 BHP

26%

5,000-6,999 BHP

23%7,000-9,999 BHP

27%

10,000-14,999

BHP

13%

15,000-17,999

BHP

6%

>18,000 BHP

5%

< 4,999 BHP

12%

5,000-6,999 BHP

36%

7,000-9,999 BHP

24%

10,000-14,999

BHP

15%

15,000-17,999

BHP

7%

>18,000 BHP

6%

Label format: Segment, Percentage in total fleet

AHTS Fleet Cascading Over Time

AHTS Fleet End 2004

AHTS Fleet Today

17

10.4%

55.7%

42.3%37.1%

41.1%

51.7%

43.2%

12.8%

22.5%

17.8% 26.6%21.8%

14.4%

20.3%

4.3%

5.8%

5.8%

6.0%

21.0%

25.4%

8.0%

2.4%

6.0%

8.1%

5.9%

2.3%

2.8%

1.9%

6.5%

1.4%

1.8%

5.8%

5.2%

0.8% 1.7%

3.1%

69.2%

13.7%

25.2%

17.2%

0.8% 0.8%

21.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

< 4,999 BHP 5,000-6,999 BHP 7,000-9,999 BHP 10,000-14,999 BHP 15,000-17,999 BHP >18,000 BHP Grand Total

0-5 yr 6-10 yr 11-15 yr 16-20 yr 21-25 yr 26-30 yr >30 yr

AHTS-Fleet Age Distribution

More than 25% of

AHTS between 7,000-

9,999 BHP are more

than 30 years old. Will

scrapping increase?

Newbuilding activity in

recent years focus on

5,000-6,999BHP and

above 15,000BHP.

< 4,999 BHP5,000-6,999

BHP

7,000-9,999

BHP

10,000-

14,999 BHP

15,000-

17,999 BHP>18,000 BHP Total

Current Fleet

(no. of vessels)211 657 433 267 124 118 1,810

Average Age (yr) 26.5 9.9 15.1 12.9 9.3 8.3 13.4

18

40

75

44

5

6

13

4

2

5

11

5

0

1

219

205

73

26

30

36

11

24

5

17

8

3

99

69

98

9

37

30

15

17

10

14

16

6

3

10

66

6

43

26

25

15

10

25

15

10

4

9

9

4

4

6

35

5

1

44

7

8

2

4

2

Southeast Asia

Middle East

West Africa

South America

Far East

Indian Ocean

Northwest Europe

Mediterranean/Black Sea

Australia/New Zealand

Mexico

Caspian Sea

USA, Gulf of Mexico

Canada, East

Other region

No. of vessels

< 4,999 BHP

5,000-6,999 BHP

7,000-9,999 BHP

10,000-14,999 BHP

>18,000 BHP

AHTS-Fleet Geography Distribution

19

Region No. of vessels

Middle East 82

West Africa 79

Southeast Asia 60

Far East 33

Indian Ocean 32

Mediterranean/Black Sea 29

Northwest Europe 18

Caspian Sea 16

South America 12

USA, Gulf of Mexico 9

Mexico 8

Canada, East 7

Central America 4

Russian Arctic 1

Australia/New Zealand 1

Grand Total 393

Current Order Book 151

Vessels recorded

without DP 743

AHTS >30 yrs

65

567

324

221

123 117

146

90

109

46

1 1

64

20

41

7 15

0

100

200

300

400

500

600

700

800

No.

of

vessels

Fleet 30yr Order book

AHTS >30yr in percentage of total fleet: 21.7%

Current order book in percentage of total fleet: 8.3%

AHTS (30yr+) Geographical Distribution

Segment disappear?

Opportunity for fleet renewal?

Most recent orders

20

Owner < 4,999 BHP5,000-6,999

BHP

7,000-9,999

BHP

10,000-

14,999 BHP

15,000-

17,999 BHP

>18,000

BHPTotal Fleet

Tidewater 15 55 39 16 1 4 130

Bourbon Offshore 5 79 8 1 1 94

Swire Pacific 13 6 17 11 7 2 56

Maersk Supply Service 4 14 25 43

Zamil Offshore 6 20 9 35

COSL 3 10 12 7 1 1 34

Topaz Marine 1 18 6 2 2 29

Vroon 28 1 29

Farstad 1 11 4 12 28

Maridive 3 21 4 28

Jaya Offshore 1 9 11 5 26

Pacific Richfield 1 16 7 1 25

Seacor Marine 3 11 10 24

Yantai Salvage 13 7 1 2 23

Alam Maritim 4 14 1 2 21

POSH Semco 12 2 6 20

Bumi Armada 1 6 8 5 20

Ezra 5 4 8 1 1 19

GulfMark 6 2 8 3 19

DOF 1 10 8 19

Others 160 424 207 161 64 1,088

Grand Total 211 657 433 267 124 118 1,810

*Ranked by the no. of vessels in the current fleet

Top 20 AHTS Owners*

AHTS

AHTS Market

Orderbook

Delivery

Scrapping

Newbuilding and second-hand market

21

22

6

3

2

2

1

Seatech P-729

SPA85L

FOCAL 680

KCM

DN59M

4.0

51

6 7

13

3 4

23

9 9

3 45

1

6

2 1

0

10

20

30

40

50

60

No

. o

f V

essels

< 4,999 BHP

5,000-6,999 BHP

7,000-9,999 BHP

10,000-14,999 BHP

15,000-17,999 BHP

>18,000 BHP

AHTS Order Book

5,000-6,999BHP Current order book: 64 vessels Design unknown: 50 vessels

10,000-14,999BHP Current order book: 41 vessels Design unknown: 29 vessels

Newbuilding Design Order Book By Yard Geographically

Note: Bubbles indicate orders included in IHS Marinebase which are doubtful in Maersk Broker view

4

4

2

2

VS4612 AHTS

SPA 150

Seatech

VS4612

23

0

20

40

60

80

100

120

0

50

100

150

200

250

US

D/

bb

lN

o.

of

Vesels

On Order (18,000 BHP)

Brent Crude Oil Price (right axis) EIA Crude Oil Price Forecast (right axis)

AHTS Delivery Profile

24

AHTS Scrapping

1

45

65

22

32

6

1

4

1

3

23

10

7 7

2

1

1

24

4

0

5

10

15

20

25

2008 2009 2010 2011 2012 2013 2014

< 4,999 BHP 5,000-6,999 BHP 7,000-9,999 BHP 10,000-14,999 BHP

Note: the scrapping number include vessels retired/ removed from service,

scrapped and to be scrapped.

< 4,999 BHP 5,000-6,999 BHP 7,000-9,999 BHP 10,000-14,999 BHP 15,000-17,999 BHP

Average Scrapping Age 32.6 30.9 33.0 31.1 29

25

0

10

20

30

40

50

60

70

80

90

100

Dec-0

8

Jun-0

9

Dec-0

9

Jun-1

0

Dec-1

0

Jun-1

1

Dec-1

1

Jun-1

2

Dec-1

2

Jun-1

3

Dec-1

3

Jun-1

4

Dec-1

4

Mill.

US

D

Newbuilding & Second-hand Prices

Newbuilding Price - AHTS UT 722L - 18,000 BHP

Second-hand Price - AHTS UT 722L - 18,000 BHP

0

20

40

60

80

100

120

0

50

100

150

200

250

2008 2009 2010 2011 2012 2013 2014

US

D/

bb

l

No

. o

f V

essels

Newbuilding Contractings

>18,000 BHP 15,000-17,999 BHP

10,000-14,999 BHP 7,000-9,999 BHP

5,000-6,999 BHP < 4,999 BHP

Brent Oil Price (right axis)

Note: The newbuilding and 2nd hand prices refer to Norwegian built vessels; Second-hand price refers to the average price of 5-year old vessels.

AHTS Newbuilding and Second-hand Market

26

AHTS Supply-Summary

AHTS orderbook increased compared with Q3 2014.

Segment of 10,000-14,999 BHP is has largest increase in orderbook.

19 AHTS newbuildings were delivered in Q4.

Scheduled deliveries for 2015 is higher than actual delivered in 2014.

Strong demolition potential remain (393 vessels above 30 years age),

no significant activity in the market.

Scrapping in 2014 less than 50% of 3 preceding years.

Average age of vessels scrapped last 7 years is 32.

New orders in 2014 lower than past 5 years.

26

PSV

PSV Fleet

Fleet overview

Age distribution



Top 20 owners


27

28

4,000 dwt Total Trend

Current Fleet 445 165 430 425 1,465

Orderbook 28 24 130 157 339

Orderbook as a % of the

Fleet6.3% 14.5% 30.2% 36.9% 23.1%

Idle Vessels 16 10 12 10 48

Idle as a % of the Fleet 3.6% 6.1% 2.8% 2.4% 3.3%

2014 Delivered 18 7 46 80 151

2015 to be Delivered 19 13 109 120 261

PSV Fleet Overview 17 PSV were put into service compared with Q3, 2014

13 PSV were put into service compared with Q3, 2014

120 new orders placed in 2015 and 32 new orders in 2016.

29

4,000 dwt Grand Total

2004 year-end 377 90 119 62 648

Current Fleet 445 165 430 425 1,465

Growth % 18.0% 83.3% 261.3% 585.5% 126.1%

4,000 dwt

10%

4,000 dwt

29%

PSV Fleet Cascading Over Time

Label format: Segment, Percentage in total fleet

PSV Fleet Today

PSV Fleet End 2004

30

18.7%

30.3%

44.4%

71.5%

42.9%

17.3%

21.2%

29.8%

15.5%

20.9%

8.8%

24.8%

16.7%

6.8%

12.4%

5.2%

8.5%

4.7%

4.2%

5.1%

1.8%

2.4%

2.1%1.2%

1.8%

2.9%

0.6%

0.5%

1.1%

45.4%

12.1%

1.9% 0.7%

15.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


0-5 yr 6-10 yr 11-15 yr 16-20 yr 21-25 yr 26-30 yr >30 yr


Current Fleet

(no. of vessels)445 165 430 425 1,465

Average Age (yr) 21.1 12.4 7.8 5.1 11.6

PSV Fleet Age Profile

More than 70% of PSV

above 4,000 dwt are

younger than 5 years old.

Newbuilding activity in

recent years focus most on

larger vessels.

31

PSV-Fleet Geography Distribution

159

3

51

69

60

47

27

6

4

0

1

6

7

5

59

13

15

13

15

21

6

5

1

2

7

5

3

41

75

83

95

14

13

33

26

18

6

9

5

8

4

81

157

78

35

2

5

19

9

16

14

4

2

1

2

USA, Gulf of Mexico

Northwest Europe

South America

West Africa

Middle East

Mexico

NW Europe/North Sea

Indian Ocean

Mediterranean/Black Sea

Australia/New Zealand

Far East

Central America

Caspian Sea

Other

(in No. of vessels)

4,000 dwt

32

Region No. of vessels

USA, Gulf of Mexico 62

West Africa 46

Middle East 35

South America 23

Mexico 22

Southeast Asia 12

Northwest Europe 10

Mediterranean/Black Sea 6

Central America 4

Indian Ocean 4

Caspian Sea 4

USA, Alaska 2

Canada, East 1

Far East 1

Baltic 1

Grand Total 233

Current Order Book 339

Vessels recorded

without DP 302

PSV >30 yrs

243

145

422 422

202

20

8 3

28

24

130157

0

100

200

300

400

500

600

700

No

. o

f vessels

Fleet 30yr Order book

PSV >30yr in percentage of total fleet: 15.9%

Current order book in percentage of total fleet: 23.1%

PSV (30yr+) Geographical Distribution

An upsizing trend

Most recent orders

33

Owner4,000

dwtTotal Fleet

Edison Chouest 8 7 24 79 118

Tidewater 29 14 48 23 114

Bourbon Offshore 41 2 25 13 81

Hornbeck 9 25 4 15 53

Harvey Gulf (incl. Abdon Callais) 27 11 9 5 52

GulfMark 4 16 20 10 50

Seacor Marine 14 10 4 2 30

Farstad 2 4 18 24

Deep Sea Supply 8 15 23

DOF 1 8 11 20

Odyssea 15 2 1 1 19

Topaz Marine 4 1 13 1 19

Companhia Brasileira de Offshore 1 13 4 18

Otto Candies 5 3 2 7 17

Island Offshore 7 10 17

Adriatic Marine 16 16

Ultrapetrol 14 14

Havila 1 3 10 14

Wilson Sons 7 7 14

Swire Pacific 7 7 14

Others 272 70 223 173 738

Grand Total 445 165 430 425 1,465

*Ranked by the no. of vessels in the current fleet

Top 20 PSV Owners*

PSV

PSV Market

Orderbook

Delivery

Scrapping

Newbuilding and second-hand market

34

35

6

3

2

1

220ft

SPP17

UT535E

DN60M

18

8

22 2

119

87

62

9 8

13

2

74

27

2017 16

1

0

10

20

30

40

50

60

70

80

90

100

No

. o

f V

essels

A 4,000 dwt

PSV Order Book Newbuilding Design Order Book By Yard Geographically

36

0

20

40

60

80

100

120

0

50

100

150

200

250

300

US

D/

bb

lN

o.

of

Vesels

Delivery (4,000 dwt)

On Order ( 4,000 dwt)

Brent Crude Oil Price (right axis) EIA Crude Oil Price Forecast (right axis)

PSV Delivery Profile

Note: 2014 backlog incl. vessels which were actually delivered but not captured by Marinebase, this number will be adjusted in the next report.

37

PSV Scrapping

3

13

10

12

45

1

1

1

0

2

4

6

8

10

12

14

2008 2009 2010 2011 2012 2013 2014

38

0

10

20

30

40

50

60

70

Dec-0

8

Jun-0

9

Dec-0

9

Jun-1

0

Dec-1

0

Jun-1

1

Dec-1

1

Jun-1

2

Dec-1

2

Jun-1

3

Dec-1

3

Jun-1

4

Dec-1

4

Mill.

US

D

Newbuilding & Second-hand Prices

Newbuilding Price -PSV UT745 - 4,000+ DWT

Second-hand Price -PSV UT745 - 4,000+ DWT

0

20

40

60

80

100

120

0

50

100

150

200

250

2008 2009 2010 2011 2012 2013 2014

US

D/

bb

l

No

. o

f V

essels

Newbuilding Contractings

>4,000 dwt 3,000-3,999 dwt

2,000-2,999 dwt

39

PSV Supply - Summary

PSV fleet keeps expanding.

PSV orderbook focus is mainly above 3,000 dwt and above 4,000 dwt.

Significance of speculators increasing especially in segment 3,000-4,000

dwt.

17 PSV >4,000 dwt newbuildings were delivered in Q4.

PSV scheduled deliveries for 2015 is significantly higher than the actual

delivered in 2014. Scheduled deliveries of 2016 is less than 1/3 of that

of 2015.

Ordering activity in 2014 lower than preceding 3 years.

No scrapping in 2014 despite 233 vessels being above 30 years.

Average age of scrapped vessels of past 6 years is 31.

40

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

US

D/

ton

ne

Plate / N.Europe domestic Ex-Works Plate (A36) / N.America domestic Ex-mill

Plate (A36) / East Asia import CFR Plate / China domestic Shanghai (incl. 17% vat)

Demand-Steel Price

Sluggish demand and oversupply situation due to slowed world economic growth and iron ore price slump

Concluding Remarks

42

Scrapping Age Is Getting Lower

Scrapping Age Historic Scrapping Activity

Source: Maersk Broker Research

0

5

10

15

20

25

30

35

40

No.

of

Vessels

AHTS PSV

20

25

30

35

40

45

50

AHTS PSV

43

AHTS Idle Fleet Increased in H2, 2014

Source: Maersk Broker Research

No. of Vessels 2014 Q1 2014 Q2 2014 Q3 2014 Q4

AHTS Idle 142 125 72 154

PSV Idle 37 32 85 48

Projected

The E&P spending (2015) announced

showed a decrease in spending

compared to 2014.

Lower oil price putting negative

pressure on market for the offshore

service industry, at least short term .

Both PSV and AHTS utilization will

under pressure in 2015.

0

20

40

60

80

100

120

140

0

50

100

150

200

250

300

Oil

pri

ce U

SD/B

BL

Id

le

No

. o

f V

essels

AHTS Idle PSV Idle Oil Price-Brent Dated FOB USD/BBL

44

Concluding Remarks

Lower oil price putting negative pressure on market for the offshore

service industry, at least short term. Exact duration of downturn still

uncertain. Very long term fundamentals remain positive.

The E&P spending budgets(2015) announced showed significant

spending cuts compared to 2014.

Speculators gaining increased space in standard segments of

newbuilding orders.

Newbuilding activity paused, awaiting the development of oil price.

Yard capacity shows significant amount uncommitted slots.

Newbuilding prices decreased slightly.

Prices for vintage tonnage in free fall.

This report is based on our knowledge of relevant market conditions. Our estimates are made on the basis of this knowledge, but other circumstances, or new circumstances, as well as general uncertainty could cause the market to develop differently. We take general reservation for misprints. All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing it in any medium by electronic means) without the written permission of the copyright owner. Likewise, any quoting is prohibited without the written permission of the copyright owner.

AHTS Market Report

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