I refer again to the significant downturn in the global marine industry but this time just to remind everyone that whilst there is a lot of misfortune for many players there are always some sectors that will be doing well or maybe just starting to pick up again.
Way back in September of 2010 Solar Solve entered into a deal with a Brazilian shipbuilder to supply 21 SOLASAFE® antiglare roller sunscreens to each vessel in a series of 10 that the yard was due to build within less than 2 years.
With a projected completion of contract by 30 June 2012 we were more than happy to quote the same firm fixed price for all 10 vessels, which were going to be crude oil tankers of 157,000 dwt.
The first 4 ships were completed within the period and then, for all of the reasons that are so well known to everyone in our industry, the rest were put on hold until 2015 when 3 more were built.
The good news was that the demand for tankers had picked up and it is still the case today. Consequently the last 3 vessels are in the pipeline and expected to be completed this year.
It is very good news that some vessel types are still being built but for Solar Solve the end of this particular story is not quite as good as we had hoped. We felt we should honour the original agreement and supply all of the ships at the quoted price, which we have done. Now, over 6 years later, not only have our overheads increased quite a bit but the weakening of the GB pound against the US dollar has not helped.
Not a sad story, not a brilliant story but one that fills us with confidence for the future and will make us a lot wiser when negotiating series of vessels.