Marine contractor Island Offshore has booked loss before tax of NOK 37 million for the quarter ended March 31, 2017, versus profit before tax of NOK 21 million same time last year.
Sequentially, the loss narrowed from NOK 1.05 billion following vessel value impairment of NOK 896 million.
The Oslo-listed company reported revenue of NOK 259 million in Q1 2017, down from NOK 363 sequentially, and from NOK 419 million in Q1 2016.
Revenue this quarter is significantly reduced due to vessels in seasonal lay-up in addition to vessel sales. All three LWI units were in seasonal lay-up this quarter, in addition to PSVs and SCVs now mobilized for contracted work from Q2 2017.
Fleet utilization was 49% including vessels in lay-up, but the company noted that it has improved in April and May 2017 following mobilization of vessels for contracted work. The fleet comprises 25 vessels. Three vessels were divested in January/February 2017 as part of the ongoing restructuring of the Group, including the subsea vessel Island Performer.
Island Offshore said it does not expect to see a more extensive market recovery until a more sustainable oil price is established, inducing increased E&P investment and market activity.
The company reported order backlog excluding charterer’s options of NOK 2.7 billion. Contract coverage for the remainder of 2017 is 55% and has improved following recent awards, Island offshore added.