Norwegian provider of subsea and offshore construction vessels, Olympic Ship, has seen red at the end of second quarter of 2016 on fleet write-downs and revenue drop of some 31 percent when compared to the prior-year quarter.
The company reported second-quarter 2016 consolidated net revenues of NOK 274 million, compared to NOK 397 million same time last year. Reduction in revenue is mostly because Olympic Ship had four ships less in operation during the period compared with the same period in 2015. Net operating revenue for the first six months of 2016 declined by some 26 percent from NOK 788 million to NOK 586 million.
Olympic Ship recognised quarterly net loss of NOK 630 million compared to profit of NOK 70 million in the corresponding period in 2015.
1H 2016 net profit was also negative NOK 579 million, against positive NOK 94 million.
The bottom line was negatively effected by the above mentioned write-downs on vessels (NOK 400 million), which together with financial items came to a total of NOK 600 million.
Despite the negative result, the company’s board said it considers its fleet to be well positioned in a challenging market. “For the Subsea and OCV market, where the company mainly operates, the overcapacity is lower and the activity is higher. In addition we see increasingly demand for subsea and construction vessels in alternative markets like renewable energy,” Olympic said it its earnings report.
Subsea World News Staff