A fall of more than 80% in the price of leasing offshore platform supply vessels has resulted in a north-east Scottish firm going into administration. Fletcher Shipping, of Portlethen,(
www.fletchershipping.com) owned four ships for leasing and has received support in the past three years from the Scottish Loan Fund.
It had two more ships on order for nearly £17 million, thanks to a loan from Santander.
However, it encountered cash-flow problems early this year when the price of oil fell. Administrators at Price Waterhouse Coopers said that the daily spot price for hiring offshore vessels has dropped from £18,000 to just £3,000, reflecting the fact that oil-production firms are looking to cut their costs and have reduced their exploration activities.
The administrators have now transferred the assets of Fletcher Shipping to a new company, FS Shipping, in a so-called pre-pack deal.
This was financed with £18 million raised through Grovepoint Capital. According to PWC, the transaction had no employment impact, as the crews were contract staff working for other firms.
Keith Fletcher, founder of Fletcher Shipping, said: “It is testament to the strong reputation of the crews and personnel at this business that we have secured the confidence of new investors who have helped us re-capitalise.
“We have worked hard to keep our fleet working throughout the recent downturn in the North Sea — a downturn that has affected the vessel market more harshly than I have ever seen in 30 years of business.”