DOF Subsea Profit Slips

In the 3rd quarter of 2014 DOF Subsea had a pre-tax profit of NOK 115 million (NOK 210 million in Q3 2013) and the profit after tax was NOK 91 million, versus NOK 171 million same time last year.

The total operating income In the 3rd quarter of 2014 was NOK 1 815 million (vs. NOK 1 732 million in the 3rd quarter 2013).

The EBITDA was NOK 496 million (NOK 552 million) and the EBIT was NOK 343 million (NOK 369 million) after NOK 153 million (NOK 182 million) in depreciation. Net finance amounted to NOK 228 million (NOK 159 million) including NOK 94 million in unrealized currency loss (NOK 10 million in unrealized currency gain).

The total operating income for the first 9 months of 2014 was NOK 5 143 million (NOK 4 494 million). The EBITDA was NOK 1 670 million (NOK 1 247 million) including a sales gain of NOK 204 million. The EBIT amounted to NOK 1253 million (NOK 698 million), after depreciation of NOK 417 million (NOK 548 million).

Net financial loss amounted to NOK 543 million (NOK 588 million), including an unrealized loss on financial instruments of NOK 27 million (negative NOK 109 million), giving a pre-tax profit of NOK 710 million (NOK 111 million) and a profit after tax of NOK 672 million (NOK 58 million).

During the quarter DOF Installer ASA, an entity in the DOF Subsea Group, sold one of its vessels, the Skandi Skolten, to an international buyer. The delivery is expected late 2014.

In September the charter contract on Skandi Santos was extended by 5 years from 1st quarter 2015. Skandi Santos is on charter to AKOFS Offshore and will be used for Subsea operations in Brasil.

The total average utilization of the DOF Subsea fleet both owned and chartered in vessels has been 93 % during the quarter.

With the current cost focus in the oil industry and an oil price below USD 100 per barrel, the company said that it expects a mixed subsea market for the next 12 months.