Ship part

DOF Group charters another Jones Act ship as it sells PSV

The Norwegian DOF has entered into another charter agreement to support its growing Jones Act operations in the United States.

The Oslo-listed offshore vessel specialist already owns the 94-loa multipurpose support vessel Ross Candies (built in 2009) chartered by owner Otto Candies of Louisiana.

Now DOF has added a deal for the 85-loa Chloe Candies (built in 2006) for a firm two-year term.

The vessel will support the operations of existing North American customers in the Gulf of Mexico.

Additionally, DOF said it has sold the old 3,600 dwt platform supply vessel Skandi Sotra (built in 2003) to an international buyer with delivery in the first half of 2022.

VesselsValue values ​​the vessel at $2 million.

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In addition, the DOF has agreed to extend its standstill agreement on debt repayment to lenders until March 31.

The company is trying to land a $2 billion long-term debt refinance and has warned it cannot continue in business unless a deal is struck.

Average fleet utilization increased 82% in the fourth quarter from 68% a year earlier.

The company controls 59 vessels, including two decommissioned owned vessels.

Talks continue

“Dialogue with lenders regarding a solid long-term financial solution progressed during the quarter,” DOF said.

“There are some outstanding issues, therefore the outcome of the restructuring process is still uncertain,” the company warned.

Net loss for the fourth quarter was NOK 281 million ($31.75 million), down from a profit of NOK 238 million, due to a large foreign exchange gain a year ago.

Revenues fell from NOK 1.34 billion to NOK 1.66 billion.