Cyprus: Deep Sea Supply Increases Revenues
Deep Sea Supply reports consolidated revenues of MUSD 38.9 in 4Q 2012 compared to MUSD 32.1 in 4Q 2011. Total operating expenses in 4Q 2012 were MUSD 23.6 compared to MUSD 19.4 in 4Q 2011.
This resulted in EBITDA of MUSD 16.6 in 4Q 2012, compared to MUSD 14.0 in 4Q 2011. Following financial expenses of MUSD 6.9, the pre-tax result was a profit of MUSD 1.1 in 4Q 2012, compared to a negative MUSD 1.3 in 4Q 2011.
For the twelve months period ended 31 December 2012, the Company reports consolidated revenues of MUSD 124.1, EBITDA of MUSD 50.5 and pre-tax result of a negative MUSD 3.6, compared to revenues of MUSD 115.9, EBITDA of MUSD 60.7 (positively influenced by a gain on sale of MUSD 24.1 in 2Q 2011) and pre-tax result of MUSD 0.8 for the same period in 2011.
During 2012 and the first two months of 2013, DESS has been awarded in total 11 long term charter contracts at attractive levels. The high contract coverage and firm contract backlog of MUSD 327 as of 1 February 2013 provides good earnings visibility during 2013 and 2014. The Company has removed 2 vessels from the North Sea spot market to commence term charter contracts in Brazil, and therefore currently only has 1 vessel operating in the North Sea spot market.
DESS is encouraged by the good progress of the joint venture transaction with BTG Pactual in Brazil. Necessary third party approvals are well in progress, and the Company expects to close the transaction end of March. By establishing the joint venture and buying six newbuilding PSVs together with BTG, the Joint
Venture will own a fleet of 21 vessels and be the third largest OSV owner in Brazil, one of the world’s largest markets for OSVs.
The Company also sees attractive opportunities in areas like West Africa, and will actively seek to increase its fleet and further strengthen its position by focusing more on such areas.
DESS remains cautiously optimistic for the OSV market in 2013. Many new rigs will be delivered this year, which is positive and moving the supply/demand balance in favor of OSV owners. A number of OSVs (especially PSVs) have been ordered in 2012, but the Company also experiences a continued increased demand for large and modern PSVs. Tendering activity is high internationally. Increased activity, both in established and new markets, continue to drive demand for large and modern OSVs, and Deep Sea Supply’s fleet of cost efficient vessels is well positioned to take part of this development.
Deep Sea Supply, February 27, 2013