Island Offshore Loses NOK 365 Mln in 2015

Island Offshore, a subsidiary of Edison Chouest Offshore and Ulstein, reported revenue of NOK 508 mill in Q4 2015, down from NOK 711 million in Q3 2015, and also lower than the same quarter last year.

Fleet utilization in Q4 was 68% including vessels in lay-up. Revenue from the PSV fleet increased in Q4 compared to previous quarters whilst LWI fleet revenue was significantly reduced due to completion of contracts and subsequent temporary winter lay-up.

Fleet utilization for the year was 75% including lay-up with revenue at NOK 2.456 mill compared to NOK 2.740 mill in 2014, equal to a 10% reduction. 2014 includes sales gain of NOK 279 mill. 67% of 2015 revenue was generated by the subsea fleet segments.

The Oslo-listed company had 29 vessels in operation within the vessel segments PSV, AHTS, Well Stimulation (WS), Subsea Construction (SCV) and Light Well Intervention (LWI).

At present 7 vessels are in layup comprising 3 PSVs, 1 SCV and 3 LWI vessels. The LWI vessels will be back in operation from early April 2016. One SCV is also expected to re-enter the market in April 2016 pending award of contract.

The book value of the fleet at 31.12.2015 was written down by NOK 268 mill based on an impairment analysis employing estimates of future cash flow for each vessel.

Book value of investments in shares held by one of the subsidiaries was written down by NOK 67 mill at 31.12.2015 due to reduced market price of the shareholdings.

YTD Q4 2015 profit before tax was NOK negative 365 mill and includes unrealized FX loss of NOK 193 mill related to conversion of ship mortgages in USD. YTD Q4 2014 profit was NOK 406 mill including gain on sale of vessels of NOK 279 mill. Loss for the quarter was NOK 453 million.

The fleet order backlog excluding charterer’s options totals NOK 4,7 billion at 31.12.2015. Contract coverage for 2016 is 49% based on contract days and 76% based on forecasted revenue for 2016.

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