Frøy wins service vessel contract

Frøy ASA has secured a large contract to supply two new service vessels to a so-far undisclosed large salmon farming company.

The Norway-based company is a boat builder and aquaculture service specialist. The two new vessels will be equipped with special battery packs allowing them to use up to 50% less fuel than a conventional diesel craft.

Frøy, which is part of the NTS group recently acquired by SalMar, said the deal is long term and worth around NOK 200 million (£17m) with further options included.

The agreement includes a four-year fixed extension of an ongoing time charter contract and a five-year fixed time charter contract for a new build under construction. Frøy will equip both vessels with large battery packages to reduce their fuel consumption and carbon footprint.

Frøy CEO Tonje Foss (pictured, below) said: “We think is great to have renewed trust. The agreement extends a long-term relationship with an important and large client for us. The contract is important for us not just because of its large size, but also as it demonstrates Frøy’s ability to deliver market leading solutions with a significant reduction in carbon footprint.”

She added: “The long contract durations further provides earnings visibility and strengthen our position as a leading provider of aqua services to the Norwegian salmon farming industry. This shows that our employees do is of a high standard, providing us with satisfied customers.”

Foss said the deal demonstrated the company’s ability to deliver market-leading an economically sustainable solutions that also resulted in a significant carbon footprint reduction.

Frøy currently has an order book worth NOK 6.2bn (£540m).

Tonje Foss