Akastor Sees More Red Ink
Oilfield services investment company, Akastor, has booked a second-quarter 2016 loss as revenue declines in the weak market.
The Oslo-listed company recorded loss of NOK 838 million (approx. $100 million) for the second quarter 2016, compared to loss off NOK 298 million ($35.5 million) in the corresponding quarter in 2015. Loss for the first half year was NOK 1.2 billion.
Akastor, as a group, generated about 24 per cent lower revenue (NOK 2.78 billion) from the same quarter one year earlier (NOK 3.64 billion). The drop in revenue was impacted by the continued challenging market situation in the oil services industry. Revenues increased by some 9 per cent quarter-over-quarter. However, revenues in the first half of 2016 were down 34 percent to NOK 5.32 billion.
The group recorded order intake in the quarter of NOK 1.7 billion, resulting in an aggregate backlog of NOK 15.1 billion.
EBITDA was NOK -45 million for the Q2 2016, down from NOK 176 million in 2015 second quarter. EBITDA in the quarter was impacted by restructuring costs of NOK 96 million, which were mostly related to downsizing in MHWirth. Depreciation, amortization and impairment amounted to NOK 245 million.
The company has six reporting segments: MHWirth, Frontica Business Solutions, AKOFS Offshore, KOP Surface Products, Fjords Processing and Real Estate & other holdings.
MHWirth and KOP have suffered the most due to the market slowdown.
MHWirth is said to had reached an agreement with AFGlobal to divest the managed pressure operations (MPO) business for a consideration of USD 10 million on closing combined with an earn-out element which potentially could reach USD 65 million over the next six years.
In addition, AKOFS Offshore, a provider of vessel based subsea well construction and intervention services to the oil and gas industry, had revenue of NOK 142 million in the second quarter compared to NOK 186 million a year earlier. The company employs 93 people.
According to Akastor, AKOFS Offshore is in dialogue with Petrobras regarding its current contracts, which includes the start-up timing of the five year Aker Wayfarer contract. The company is said it expects to conclude these discussions during Q3 2016.
Subsea World News Staff