DOF Posts Q4 Loss

Norwegian offshore vessel owner DOF has slipped into the red in the fourth quarter 2014, despite revenue growth and sale of assets.

The company recorded a Q4 net loss of NOK 202 million (USD26.6 million), compared with a NOK 134 million profit in the corresponding period in 2013.

Revenue for the period was NOK 2.8 billion, an increase of approximately 9.3 percent from the same period in 2013. However, operating costs rose over 15 percent and the company suffered a NOK 400 million loss on currencies.

For the full year 2014, DOF made a profit of NOK 501 million compared to a loss of NOK 52 million at the end of 2013. Revenues also rose to NOK 10.68 billion from NOK 975 million.

The subsidiary DOF Subsea, posted a 4th quarter operating income of NOK 1 931 million (vs. NOK 1 795 million in 4th quarter 2013). In 2014 DOF Subsea had an operating income of NOK 7 073 million (vs. NOK 6 289 million in 2013).

DOF Subsea’s Q4 profit after tax was NOK 63 million, versus NOK 162 million same time last year. For the full year 2014 profit after tax was NOK 734 million, compared with NOK 220 million at the end of 2013.

DOF siad that, as per December, it has had 69 vessels in operation, of which the main part of the fleet is secured on long-term contracts.

“The Group has secured good utilisation for the fleet throughout 2015. The Group maintains its strategy to have a majority of the fleet secured on long-term contracts, and is actively working on securing long-term charters for the fleet. The number of DOF Subsea vessels on fixed term contracts is expected to stay steady for the remaining part of the year,” the company said in a statement.

The company informed that due to considerable weakening of the oil price and increased focus on cost cuts and capital rationing from the oil-companies, expects a lower activity and increased uncertainties on future markets. With a basis in the Group’s high backlog DOF expects operational EBITDA for 2015 in line with, or somewhat weaker than in 2014.