DOF Subsea Hikes Q2 Profit

DOF Subsea has seen its profit rise in the second quarter 2015 despite tough market conditions.

Profit for the second quarter 2015 was NOK 296 million ($36.2 million) compared to NOK 178 million ($21.8 million) in the same period in 2014.

However, profit for the first half of 2015 was NOK 436 million versus NOK 580 million in the corresponding period in 2014.

Operating income was NOK 1 865 million (vs. NOK 1 877 million in 2nd quarter 2014) with an EBITDA of NOK 513 million (NOK 511 million).

The EBIT was NOK 324 million (NOK 370 million) after depreciation and write-downs of NOK 189 million (NOK 141 million).

For the first 6 months of 2015, DOF Subsea had an operating income of NOK 3 422 million (vs. NOK 3 328 million for first 6 months of 2014) with an EBITDA of NOK 1 091 million (NOK 1 173 million). The EBIT was NOK 766 million (NOK 910 million) after depreciation and write-downs of NOK 324 million (NOK 263 million).

During the quarter the vessel utilization was 90 %, where the project vessel utilization was 78 % and the TC vessel utilization was 98 %. The low utilization of the project vessels during the quarter was mainly due to repair of Skandi Inspector and idle time between projects on Harvey Deep Sea, Chloe Candies, Skandi Protector and Skandi Hercules.

In May 2015, DOF Subsea acquired the vessel Skandi Hawk from DOF ASA and sold its shares in DOFTech DA to Technip.

The Board of Directors has proposed a dividend of NOK 1.88 per share, approved by the extraordinary general meeting on August 12.

In addition, at the end of the quarter, the number of employees in the DOF Subsea was 1 758 persons compared to 1816 in Q1.

By June 2015, the total backlog (including options) was approximately NOK 36 billion, out of which firm contracts count for approximately NOK 19 billion.