FPSO Market for 2014 Revised Downwards

The general market for Floating Production Storage and Offloading (FPSO) projects in 2014 has been revised downwards by Sevan Marine.

‘We now expect the general market for FPSO projects in 2014 to be slightly weaker than previously anticipated. At the same time we believe that Sevan is in a good position and that we will be engaged in a number of studies/FEEDs that may end up with license agreements,’ reads a report released on Thursday.

The company reported a plunge in total assets, from USD 677.8 million to USD 164.9 million. This result is mainly due to write-down of two hulls in 2012. Seven Marine also registered stable revenues and a significantly improved profit.

The company confirmed its intention to specialize in the design, engineering and project execution of FPSO, FSO and FLNG units.

‘Overall, the Board is of the opinion that there is a general positive outlook for both the FPSO and the Topside and Process Technology segments in 2014. However, it is expected that a tighter monitoring of capital expenditure in oil companies may lead to longer tendering processes; and potentially postponements of certain projects in the short and medium term. The increased focus on cost effective solu- tions may be an advantage for the Company, as it has experienced strengthened interest in the Sevan technology. The understanding of its competitive strengths has increased during the year, and the Company is now involved in the conversion of two hulls into accommodation units,’ the company wrote in its analysis.

Seven Marine also said it believes that a large part of new rigs will be cylindrical in the future, while stating it is investing in developing an ice proof gull for arctic conditions.