Viking Supply Ships A/S, a supply shipping company based in Kristiansand, Norway, has decided to lay up Odin Viking with immediate effect, citing poor market conditions within the conventional AHTS market.
The company says it will start negotiations with the employees and respective unions in order to assess the crewing situation going forward with the ambition to minimize lay-offs.
Viking Supply Ships has already implemented a cost reduction program, reducing the yearly operational costs with NOK 45 million ($5.3M). Namely, in September 2015, Viking Supply laid up three Platform Supply Vessels (PSVs).
As a response to the weak market, the company will further initiate a new Market Adaption Program, with an ambition of additional yearly savings of up to NOK 70 million ($8.3M), Viking Supply Ships said in a press release.
As a result of parts of the fleet being laid up, the company also says it will make impairment on the PSV fleet, which will have a negative effect on the third quarter results.