Norwegian shipowner Farstad has seen its loss widened on more than 40 percent drop in operating income and large fleet and asset impairment recognised in the fourth quarter of 2016.

The company has booked quarterly loss of NOK 2.38 billion, or NOK 61 per diluted share, versus a loss of NOK 1.31 billion a year earlier. This result was impacted by the above mentioned NOK 1.8 billion impairment charges. Same time last year, Farstad also recognised impairments of close to NOK 1.1 billion.

Farstad also recorded net loss of NOK 3.6 billion for the year 2016 on impairments of NOK 2.67 billion, versus loss of NOK 2.17 billion for the full year 2015.

The company achieved operating income of NOK 524.3 million for the fourth quarter, down from NOK 940 million in Q4 2015.

Full-year operating income was NOK 2.17 billion on NOK 2.64 billion in 2015.

At the end of Q4 2016, Farstad reported a total backlog (excl. options) of approximately NOK 3.6 billion.

Farstad Shipping’s subsea fleet currently consists of 7 vessels which will become a part of combined fleet between Solstad Offshore, Farstad Shipping and Deep Sea Supply following a merger announced earlier this month.

The joint fleet would operate a fleet of 33 CSV, 66 PSV and 55 AHTS vessels deployed globally in all deep water hubs.

Subsea World News Staff