Hornbeck Buys 10 OSVs as it Moves Forward from 2020 Bankruptcy
Hard hit by the prolonged downturn in the oil industry, Louisiana-based Hornbeck Offshore Services announced its latest strategic transaction, buying ten high-spec new generation offshore supply vessels, since emerging from bankruptcy 16 months ago. The company, which has been a leader servicing the energy industry primarily in the Gulf of Mexico and Latin America, as well as to the U.S. military, said it is looking toward new growth opportunities as it pursues a new strategic plan.
Hornbeck Offshore agreed to acquire ten high-spec new generation OSVs for an undisclosed amount of cash from Edison Chouest Offshore. Eight of the vessels are U.S.-flagged, Jones Act-qualified, 280 class DP-2 OSVs with capacities of approximately 4,750 dwt. The other two vessels are Mexican-flagged 240 class DP-2 OSVs with capacities of circa 3,200 dwt.
"We are very excited about this acquisition, which puts us on a path for growth for the benefit of our employees, oilfield and non-oilfield customers, and other constituents,” said Todd Hornbeck, the company's President and Chief Executive Officer. “We look forward to executing our strategic plans for additional growth and business diversification initiatives in the future.”
Hornbeck did not provide specifics on the potential markets only noting the opportunities in non-oil field areas. The first of the vessels involved in this transaction is expected to be delivered within the next 90 days. Hornbeck said that they will be completing regulatory drydockings to be conducted by the sellers prior to delivery. They expect to take delivery of all the vessels over the next 12 to 15 months.
The company filed for bankruptcy in May 2020 reporting that 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 reduce budgets for services and led to a glut of ships. Hornbeck was forced to lay up vessels and reduce staffing levels. The further decline in the oil market in 2020 due to the pandemic forced Honrbeck into reorganization bankruptcy. It emerged in September 2020.