DOF Subsea: 3Q Revenue up, profit swings to loss

DOF Subsea, a Norwegian provider of offshore support vessels, has seen its third quarter 2015 revenue rise to 1.9 billion Norwegian crowns, up from NOK 1.8 billion in 3Q 2014.

Despite the rise in operating revenue, DOF Subsea on Friday reported a loss for the third quarter of 2015.

Unlike last year, when DOF Subsea recorded a profit of 91 million Norwegian crowns in the third quarter, the company in 3Q 2015 announced a loss of NOK 312 million.

During the quarter, the company secured several contracts worth NOK 4.5 billion in total.

In its quarterly presentation, DOF Subsea said its board of directors expected the challenging market to continue into 2016, with an oil price of $50 per barrel, the current cost focus in the oil industry and an increased supply of vessels.

As per September 30, 2015, the group fleet included 22 owned vessels, 5 chartered-in vessels, and 4 vessels under construction in a joint venture with Technip.

The company said that the majority of its fleet was fixed on long-term contracts, but it acknowledged that it is exposed to the short-term market fluctuations on the subsea project vessels.

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