Offshore vessel owner Deep Sea Supply (DESS) gave a bleak out for the OSV market as it reported a $120.5m loss for 2015.

DESS reported a $120.5m loss for 2015, against a $896,000 loss in 2014 as it took a $117.2m impairment on the book value of its fleet. The company’s fleet was valued at $714.5m at the end of 2015 versus $880.3m at the end of 2014.

Out of 39 vessels in DESS’ fleet 15 are laid-up, comprising 14 PSVs and one AHTS.

“As a consequence of the weak market, DESS will continue to lay up vessels that do not have any fixed activity the next months,” the company said.

Four vessels that were previously out of operation in Brazil only have licenses till 27 February. “In Brazil, the situation remains difficult with reduced activity and foreign flagged vessels being blocked by vessels with local flag,” it said.

Looking ahead the picture remained bleak and it said, “No improvement in the market situation for OSVs is expected in the short to medium term.”

“The contract coverage for 2016 for the company is not satisfactory. DESS is currently pursuing some term opportunities, however the competition is fierce and rate levels are low,” the company warned.