Akastor Stays Down
Oilfield services investment company, Akastor, has booked a fourth-quarter 2015 loss as the weak market caused impairments and low order intake to hit the Group’s earnings.
The Oslo-listed company recorded loss of NOK 638 million ($74 million) for the third quarter 2015 and loss for full year of NOK 2.56 billion ($296.7 million). Earnings per share for the quarter are negative NOK 2.44.
Akastor, as a group, generated 26 percent lower revenue in the fourth quarter from the same quarter one year earlier, of NOK 3.95 billion. The decrease in both Q4 and full year revenue was due to lower activity and weaker market conditions in the oil service industry in general, and the offshore drilling market in particular.
Revenue in 2015 was down approximately 26 percent to NOK 15.87 billion from NOK 21.43 billion.
The company has six reporting segments: MHWirth, Frontica Business Solutions, AKOFS Offshore, KOP Surface Products, Fjords Processing and Real Estate & other holdings.
MHWirth has suffered the most due to the market slowdown. Personnel reductions of approximately 2 300 people throughout 2015, and into 2016, have been announced, corresponding to a reduction of around 54 percent compared to year-end 2014.
With these adjustments, Akastor expects to reduce the cost base by around NOK 1 700 million, with restructuring costs of NOK 33 million recognized in the fourth quarter, and NOK 235 million for 2015.
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 198 million in the fourth quarter compared to NOK 256 million a year earlier. Full-year revenue was NOK 781 million. The company employs 91 people.
Subsea World News Staff