MSI Consultancy Case Study – Optimal offshore fleet and acquisition strategy
The client, a leading Middle East vessel operator, wished to enter the offshore marine services market, and required a detailed market assessment and business plan incorporating cashflow and capital requirement forecasts.
A key project element was optimising the fleet composition to marry asset flexibility with commercial performance.
MSI studied global and regional market dynamics for the OSV, subsea and marine construction industry, including offshore capital expenditure and supply and demand for rigs, subsea and OSVs under different scenarios.
We performed a fleet deployment analysis and comparison of assets deployed in different regions to assess redeployment opportunities.
We created an outlook for fleet utilisation and earnings, newbuilding and secondhand asset price forecasts, including an assessment of construction options in the Middle East compared to other regions.
MSI assessed the competitive landscape and profiled the company’s peers, including an assessment/shortlisting of potential acquisition targets. We also identified target customers and existing relationships with OSV providers.
Based on the above, MSI proposed the optimal fleet mix to deliver asset flexibility and financial returns. advising on potential availability of assets.
We created a business plan and financial model with simulation capability to assess alternative strategies – build-and-operate, buy-and-operate, charter-and-operate and the optimal owned/chartered mix.
MSI prepared a detailed market review which comprised a single report addressing all parts of the scope as described above. We highlighted the key risks for the project and presented the client management team with a clear recommendation of the asset types/specifications, including the number of assets and timing of investment required.
To learn how MSI’s Consultancy Services can help your business understand and profit from market dynamics in shipping, offshore and shipbuilding, please get in touch.