Deep Sea set fair

John Fredriksen’s Deep Sea Supply is set for a spike in both dividend and profit after purchasing a fleet of 10 vessels from its largest shareholder.

Oslo-listed Deep Sea raised $200m from a private placement to secure the 10 platform supply vessels (PSVs) which Fredriksen ordered via his private company Seatankers.

Deep Sea Supply is taking in six of the vessels which are trading and will accept delivery of the four newbuildings from Sinopacific Shipbuilding in China this year.

“Post the recent $200m equity offering and acquisitions of 10 PSVs DESSC has turned itself in a good position to distribute high dividends going forward,” RS Platou Markets analyst Terje Mauer wrote in a report today.

“This is expected to drive the share price upwards in the coming quarters.”

Mauer has also lifted profit forecasts for Deep Sea Supply after the acquisition.

Deep Sea is projected to post a profit of $32m in 2014, growing to $57m in 2015 and $55m the year after, the report showed. 

The comments came in a second quarter results preview that said Deep Sea Supply is expected to book a gain of $7m for the three months to the end of June, according to consensus estimates.