Britoil snaps up bulk of Vroon’s offshore support fleet

In June 2023, Breda, the Netherlands-based Vroon Holding BV, announced it had “turned green” following a financial restructuring to become in its words “a more focused, lean and financially robust international shipping company.”

Prior to this, also in 2023, it was reported that a group of banks had taken control of Vroon in a debt-for-equity swap, a move that drew attention to the diverse composition of the fleet of the family-originated business that was established in 1890.

Conventional cargo vessels including tankers and livestock carriers operated alongside a broad range of offshore support vessels (OSVs), including anchor handlers, platform supply vessels, emergency response and rescue vessels (ERRVs) and subsea support vessels. The restructuring included the decision to concentrate on the deep-sea vessel fleet and to include the ERRVs from the offshore sector with the future of around 40 OSVs lying elsewhere, under new ownership.

The question that followed was whether those vessels would be disposed of individually or would another operator step in to buy a large number, if not all, of the fleet in what was described as “a complicated process”.

Small numbers of vessels were indeed sold to various global interests but this latest news, that a large bulk of Vroon’s offshore fleet along with two management offices in Singapore and Italy, are going to Britoil will see the Singapore-based company expanding its operating footprint into the Mediterranean, the North Sea and Asia Pacific, while also gaining synergies with its Middle East and African operations.

For such a move, continuity with existing clients and contracts would naturally be important and Ernest Loh and Sivakumar Ramadu will continue to head up the team in Singapore with Andrea Cavo leading the Italy office, all reporting to Florent Kirchhof, Britoil’s CEO based in Singapore.

“Vroon will ensure a smooth and seamless transition of its vessels, crews and organisation to Britoil,” said Britoil.

Doubling the fleet

Acquisition of these vessels will double Britoil’s current fleet, the new owner saying the deal will ‘propel Britoil into the selected group of top 10 offshore service vessel owners, with one of the youngest average fleet ages, at 11 years for the combined fleet’.

“This acquisition fits well within Britoil’s growth strategy, acquiring modern assets, expanding into a global network as well as building a strong foundation for growth in the offshore renewables market,” the company says.

Transport Capital acted as exclusive financial advisor to Britoil.

Recent years have seen a gradual expansion in Britoil’s fleet of vessels, other significant developments including late in 2022 the opening of a new branch in Dubai, UAE.

“This acquisition provides a robust platform for growth as a combined company,” said Britoil Offshore Services CEO Florent Kitrchhoff. “We are truly honoured to be working with an experienced management team and we look forward to the opportunity to widen our geographical offerings and a diversified client portfolio together as one team.”

Vroon’s reliable, sustainable and cost-effective solutions have seen many successes with their clients. Sustainability is no longer a want but a must and need. Britoil’s customers will be able to benefit and see cost-effectiveness in our solutions.”

“With the sale to Britoil of 30 offshore support vessels and our offshore management offices in Genoa and Singapore we have virtually completed the divestments that are part of our financial restructuring and strategic refocus which we communicated earlier this year,” said Vroon CEO Martijn Schouten.

“We see a good fit with Britoil’s existing offshore operations and believe the combined fleet will be a strong global provider of offshore services to existing and new clients across the world.”

Britoil was formed in 1988 and its fleet composition can perhaps be described as conventional compared to the broader range of offshore vessels within Vroon’s fleet, comprising anchor-handling tugs (between 52tbp and 155tbp), anchor-handling tug supply vessels (maximum 100tbp) and two 3,000dwt platform supply vessels.

In 2021, HICO Investment Group, the private investment business of the Hartnoll family based in Singapore, acquired a significant stake in Britoil.