DOF Subsea: Best first quarter ever

DOF Subsea has announced it had its best 1st quarter ever with a total operating income of NOK 1 451 million compared to NOK 1 156 million in the 1st quarter 2013.

The profit for the 1st quarter 2014 amounted to NOK 402 million compared to a loss of NOK 75 million in 1Q 2013.

The EBITDA was NOK 663 million (NOK 308 million) and the pre-tax profit for the quarter was NOK 408 million (negative NOK 92 million). The profit for the period amounted to NOK 402 million (negative NOK 75 million).

During the 1st quarter 2014 DOF Subsea has been awarded several contracts in the Asia Pacific, Atlantic and North America regions utilizing the regions’ vessels. The awards include call off under the Survey Frame agreement with Statoil for 2014 and 2015 using Geosund. DOF Subsea has also chartered in 2 Jones Act vessels in the North America region for 1 year with options to extend the charter, these vessels are fixed on medium to short term contracts. In January Skandi Bergen was delivered to its new owners and Aker Solutions exercised their purchase option on the Skandi Aker. The latter transaction will take place in February 2015.

As per 31st of March 2014 the Group’s fleet comprised of 23 owned vessels, 4 long-term chartered in vessels, 5 newbuilds and an ROV fleet of 51 units and 7 ROVs on order.

Mixed market
The majority of the Group’s vessels are fixed on long-term contracts. The contract backlog including options amounted to approximately NOK 33 billion as of 31st of March, equivalent to about 5 years turnover. However, the Group is exposed to the short-term market on the project vessels. On these vessels the management is working to increase the contract backlog and, the company says the tendering activity is quite high. With the current cost focus in the oil industry, the expected subsea investments in the years to come and with an oil price above USD 100 per barrel, the Board of Directors said it expects a mixed subsea market for the next 12 months.

$1 million= NOK 5.9 million