DOF Subsea Profit Down 65 Pct

Oslo-listed, DOF Subsea, has posted profit for the first quarter 2015 of NOK 139 million ($18.4 million), versus NOK 402 million ($53.3 million) in the year-earlier period. 

The 65.4 per cent drop in profit, or NOK 263 million, is mainly due to net financial loss of NOK 320 million, related to unrealized currency loss and unrealized loss on financial instruments. Depreciation and write-down were NOK 135 million, up form NOK 122 million in the corresponding period in 2014.

DOF Subsea’s operating income for the first quarter 2015 increased 7 per cent to NOK 1 558 million, compared to an operating income of NOK 1 451 million for the 1Q 2014. The operating expenses also increased 24 per cent due to 3 additional vessels on time charter compared to 2014 and increased project and transit cost.

EBITDA for the quarter was down 13 per cent and EBIT was down 18 per cent.

By March 2015 the total backlog (including options) was approximately NOK 37 billion, out of which, firm contracts count for approximately NOK 18.5 billion.

As per March 31, 2015, the Norwegian-based subsea vessel owner reported fleet of 22 owned vessels, 5 long-term chartered-in vessels, 4 vessels under construction, an ROV fleet of 58 units and 9 ROVs on order.

Vessel Utilisation

During the first quarter 2015, the utilization of the DOF Subsea’s vessels was 81 %. According to the company, the main reasons for the low utilization were seasonality in the North Sea and the fact that Skandi Protector and Skandi Hawk were upgraded for long-term contracts. Skandi Singapore was under transit from Angola to New Zealand. Skandi Santos was dry-docked and Skandi Inspector was in transit from Canada to West Africa for maintenance and preparation for an AUV job. In addition. 8 ROV systems were mobilized on five vessels. The utilization for the project vessels during the 1st quarter 2015 was 53 % and for the time charter vessels 98 %.

Furthermore, at the end of the quarter, the number of employees in the DOF Subsea was 1 816 persons. According to DOF Subsea, the numbers do not include marine employees that are employed in DOF Management and Norskan.

“With an oil price of USD 60 per barrel, the current cost focus in the oil industry and increased supply of vessel, the Board of Directors expects a weak AHTS market and a weak to mixed subsea market for the next 12 months,” the company said in its Q1 2015 presentation.