Solstad Posts Quarterly Profit Drop

Oslo-listed Solstad Offshore, has recorded a profit of NOK 171.2 million ($20.8 million) for the second quarter of 2016, a decrease from NOK 218.3 million ($26.5 million) from the prior-year comparable period, mainly on fleet-related impairments.

Namely, the Norwegian vessel owner who entered into a merger agreement with REM Offshore in July this year, has written down the booked value of three vessels by a total of NOK 100 million in the second quarter. Total impairment for the quarter was about NOK 130 million.

Operating revenue for the second-quarter 2016 dropped to NOK 719 million when compared to NOK 1.06 billion in the year-ago quarter. Decline is mostly related to vessels in lay-up and lower utilization and day rates in all segments.

Operating revenue for the first half of 2016 was NOK 1.47 billion versus NOK 1.97 billion at the end of first half of 2015.

For the first six months ended June 30, 2016, Solstad generated profit of NOK 549 million, against loss of NOK 11 million in 1H 2015.

Solstad’s fleet, as of June, 2016, consisted of 44 wholly owned or partly owned vessels, including 1 new build (CSV). The company said that delivery of CSV Normand Maximus has been delayed till mid-September, and that it has placed a sale/leaseback arrangement for the vessel.

Firm contract backlog as of June 30 stood at NOK 8.1 billion.

Subsea World News Staff

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