Fleet expansion to propel growth for marine and offshore companies

Yard utilisation is also strong amidst demand for repairs.

Marine and offshore companies are poised for long-term growth, thanks to plans to expand their fleets to cater to the oil & gas and offshore wind markets.

This projection is specifically expected for Marco Polo Marine (MPM) and Pacific Radiance
(PACRA), CGS International said, following their small group meetings with the companies.

According to CGS International, MPM highlighted its yard operations at around 90% utilisation, progress on its offshore wind strategy, including building a second commissioning service operation vessel by 2028, and preparation for two new vessels for deployment in Thailand and/or Malaysia from 2026F.

PACRA, meanwhile, noted fleet utilisation and potential for higher charter rates from 2026. It is also pushing further into offshore wind with three new crew transfer vessels by end-2026 and partnerships in Korea.

“Whilst we think the newbuilding upcycle for OSVs is yet to come due to tight bank financing and yard availability globally, yard utilisation for MPM and PACRA has been strong amid demand for repairs,” CGS International said.

“Due to limited newbuilds, the usable age of older vessels is being stretched, which drives a greater need for repairs work,” it added.

Citing data from offshore market intelligence provider Spinergie, the average fleet age of active mid-large sized AHTS has increased by 1-2 years to 15-18 years in 2025 from 12-16 years in 2023.

“We think this backdrop also underpins MPM’s recently announced 3-year ship repair & maintenance agreement with Cyan Renewables, which has an offshore fleet of 33 vessels,” CGS International said.