DOF Subsea Delivers Its Best Q1 Results

DOF Subsea, a specialist subsea service business, had its best 1st quarter ever with a total operating income of NOK 1 451 million (vs. NOK 1 156 million in the 1st quarter 2013).

The EBITDA was NOK  663 million (NOK 308 million) and the pre-tax profit for the quarter was NOK 408 million (negative NOK 92 million).

The profit for the period amounted to NOK 402 million (negative NOK 75 million).

The 1st quarter 2014 financial statement includes the first time application of IFRS 10, 11 and 12 and the financial statement for previous periods has been restated accordingly using the equity method for joint ventures.

The 1st quarter EBITDA before IFRS adjustments i.e. using the proportional consolidation method was NOK 706 million.

During the 1st quarter 2014 DOF Subsea has been awarded several contracts in the Asia Pacific, Atlantic and North America regions utilizing the regions’ vessels. The awards include call off under the Survey Frame agreement with Statoil for 2014 and 2015 using Geosund.

DOF Subsea has also chartered in 2 Jones Act vessels in the North America region for 1 year with options to extend the charter, these vessels are fixed on medium to short term contracts. In January Skandi Bergen was delivered to its new owners and Aker Solutions exercised their purchase option on the Skandi Aker. The latter transaction will take place in February 2015.

During the 1st quarter the average utilization of the project vessels has been 70 % with a utilization of 72 % in January, 73 % in February and 65 % in March. During the quarter Skandi Singapore, Skandi Hercules, Skandi Hawk, Skandi Skansen and Geosund have had lower utilisation due to yard stay, transit and idle time between projects.

The average utilization of the time charter vessels has been 92 % with a utilization of 89 % in January, 95 % in February and 92 % in March. The utilization numbers for the TC vessels reflect dry-docking of Skandi Salvador, transit of Geoholm from the North Sea to Brazil, maintenance and upgrade of Skandi Arctic, Geograph and Skandi Vitoria.

The total average utilization of the DOF Subsea fleet has been 84 % for the 1st quarter. All utilization numbers are based on actual available days, not excluding days at yard for dry-docking or repair / upgrading or transit / idle time between projects.

Full results

Press Release, May 16, 2014