DOF sinks deeper into the red

Norwegian offshore vessel provider DOF ASA saw its net loss deepen in the fourth quarter of 2017 but the tendering activity increased during the quarter.

The shipping company on Friday posted a loss of NOK 853 million for the fourth quarter 2017 compared to a loss of NOK 714 million in the prior-year quarter.

The company’s operating income in 4Q 2017 totaled NOK 1.79 billion compared to NOK 1.78 billion in the year before quarter.

According to the company, its revenues from subsea projects have been lower compared to the same period last year, however revenues from long-term contracts have increased due to start-up of new contracts.

DOF’s total fleet consists of 67 vessels, including 20 anchor handling tug and supply vessels, 16 platform suppliers, 29 subsea vessels, two newbuild PLSVs, and 71 ROVs.

The company’s fleet utilization during the fourth quarter 2017 was 76% with 80% for subsea fleet, 67% for AHTS fleet, and 82% for PSV fleet. By the end of the quarter, five vessels were in lay-up.

Group backlog at the end of the quarter totaled NOK 23 billion.

The main part of the group’s PSV and AHTS fleet operate on firm contracts or in the spot market, while the subsea fleet is partly utilized on term contracts or on subsea IRM (Inspection, Repair and Maintenance) project contracts.

Commenting on its performance, DOF said that the market has overall continued to be weak, and with seasonal variations in the different regions during the fourth quarter.

Looking ahead, DOF added that the market in the North Sea is expected to be weak during winter season and total vessels in lay-up by mid-February were 143. The rig contracting activity is however growing and the OSV demand has turned positive with the North Sea tendering activity increasing with new project sanctioning.

The general market conditions within the subsea segment are still challenging, however in line with the rebound in the oil price the tendering activity has increased during the quarter for projects with start-up in 2018 and 2019. The market in Brazil has shown signs of improvements, and a number of floating installations to be installed in the near future could be supportive for the vessel demand in the region.

Offshore Energy Today Staff

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Posted on February 23, 2018 with tags .

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