Hornbeck buys 10 OSV as it advances from 2020 bankruptcy
Hard hit by the prolonged downturn in the oil industry, Louisiana-based Hornbeck Offshore Services has announced its latest strategic transaction, the purchase of ten high-quality next-generation offshore supply vessels, since it emerged from bankruptcy. 16 months ago. The company, which has been a leader serving the energy industry primarily in the Gulf of Mexico and Latin America, as well as for the U.S. military, said it seeks new growth opportunities as ‘she was pursuing a new strategic plan.
Hornbeck Offshore has agreed to acquire ten high quality next generation OSVs for an undisclosed cash amount from Edison Chouest Offshore. Eight of the vessels are Jones Act qualified US-flagged Class DP-2 FSOs with a capacity of approximately 4,750 dwt. The other two ships are Mexican-flagged DP-2 class OSV 240s with a capacity of approximately 3,200 dwt.
“We are very excited about this acquisition, which sets us on the path to growth for the benefit of our employees, oil and non-oil field customers and other stakeholders,” said Todd Hornbeck, President and CEO the management of the company. “We look forward to implementing our strategic plans for further growth and business diversification initiatives in the future. “
Hornbeck did not provide details on potential markets, noting only opportunities in non-oil areas. The first of the vessels involved in this transaction is expected to be delivered within the next 90 days. Hornbeck said they will complete regulatory dry docks that will be performed by sellers prior to delivery. They plan to take delivery of all ships over the next 12 to 15 months.
The company filed for bankruptcy in May 2020, saying it had more than $ 1.2 billion in debt that it needed to restructure. They traced the difficulties back to 2014, when low oil prices first caused the industry to cut service budgets and lead to a glut of ships. Hornbeck was forced to decommission ships and downsize. The further decline in the oil market in 2020 due to the pandemic has forced Honrbeck into reorganization bankruptcy. It appeared in September 2020.