Red ink for Eidesvik

Norwegian supply, subsea and seismic shipping company, Eidesvik Offshore, has posted a fourth-quarter 2015 net loss despite rise in revenues. 

The shipping company’s net loss was NOK 202,3 million in the fourth quarter of 2015, compared to NOK 252,9 million in 4Q 2014.

For the fourth quarter of 2015, Eidesvik posted revenues of NOK 343,2 million, versus revenues of NOK 259,4 million in the same period of 2014.

The company recognized a gain of $92,8 million on sale of two vessels, the cable-lay vessel European Supporter and seismic vessel Viking II, both delivered to the client in October 2015.

Based on the weak outlook to revenues in the supply segment, Eidesvik decided to recognize an impairment charge of NOK 290 million for five vessels. The assessment is based on value in use of the vessels.

In order to position itself for difficult market conditions Eidesvik entered into new contracts for its vessel; sold the European Supporter and Viking II with debt-reduction of $12 million and net cash effect of $17 million; renegotiated all loan agreements which had maturity in 2016, -17, -18 and -19; entered into agreement with sea-employees for working hours reduction; carried out general reduction of operating expenses through lay-up and flag-change; reduced administration expenses; and negotiated new agreements with major suppliers.

According to the company, the market conditions have deteriorated further through 4th quarter 2015, therefore Eidesvik said it expected additional cuts in the the oil companies’ investments, which would reduce the activity levels going forward.

Offshore Energy Today Staff

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