Published:
3 reasons why STX OSV suffered delays
There were temporary supplier constraints, bottlenecks in subcontracting capacity, and general yard overload.
OCBC Investment Research noted:
STX OSV suffered some delays in its Brazil operations and several of its vessels were behind schedule. This was largely due to general yard overload, temporary supplier constraints and bottlenecks in subcontracting capacity.
To alleviate capacity constraints, it reached an agreement with Rio Nave shipyard for the sub-delivery of steel hulls. In terms of financial impact, management added that it takes in costs on an ongoing basis, meaning that a substantial portion of the cost over-run has already been absorbed in previous quarters.
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