DOF Subsea Reports First Quarter Results (Norway)

The DOF Subsea AS consolidated operating income for the first quarter of 2011 was NOK 899 million (NOK 731 million), with an EBITDA of NOK 241 million (NOK 186 million).

The numbers are reflecting the fact that 2 vessels were repositioned, 3 vessels were upgraded and 2 vessels were trading in the North Sea AHTS spot marked.

Events first quarter

During the 1st quarter DOF Subsea AS took delivery of Skandi Niteroi from STX Promar and the vessel sailed to STX Langstein in Norway for installing additional equipment before returning to Brazil.

In March Geograph entered a 5 year contract with Petrobras.

During the 1st quarter Skandi Neptun and Skandi Inspector was dry-docked and upgraded. Skandi Hercules installed a 140 tons crane. Geograph and Geobay were in transit from Europe to Brazil and Australia. Skandi Skolten and Skandi Hercules faced the weak North Sea AHTS market before the vessels were sailing out of the region.

The utilization of the total fleet both TC and Project vessel has been 75 % in January, 75 % in February and 89 % in March.

Utilization of the project vessels were 50% in January, 73% in February and 90% in March. The main reason for the low utilization during January and February was dry-docking and repositioning of 4 vessels.

All utilization numbers are actual vs. available days.

In the first quarter the activity in the Asia Region increased, and in March the region had full vessel utilization. In the North Sea the activity was low during the quarter, whilst there was a high activity in Brazil.

P&L and Balance first quarter of 2011

The income for first quarter was NOK 899 million (NOK 731 million), with an EBITDA of NOK 241 million (NOK 186 million) and an EBIT of NOK 72 million (NOK 32 million) after depreciations of NOK 162 million (NOK 153 million). The net finance cost amounted to NOK 175 million (NOK 104 million), giving a pretax loss of NOK 103 million (NOK-72 million) and a loss after tax of NOK 86 million (NOK 51 million).

The total asset was NOK 17.3 billion (NOK 14.2 billion) where fixed assets amounted to NOK 14.5 billion (NOK 11.7 billion) including NOK 514 million (NOK 615 million) in intangible fixed assets. The total current assets amounted to NOK 2.8 billion (NOK 2.4 billion) of which NOK 1.5 billion (NOK 1.5 billion) is cash and cash equivalents.

The book equity was NOK 5.0 billion (NOK 3.8 billion), the long term liabilities was NOK 9.9 billion (NOK 8.3 billion) whilst the current liability amounted to NOK 2.3 billion (NOK 2.0 billion).


During the quarter the DOF Subsea finalized the funding of 4 vessels at market terms and took delivery of Skandi Niteroi. DOF Subsea has funded the vessel by equity until the drawdown of the BNDES loan in June /July.

Exchange Rate and Interest Rate

The company has an active exchange rate and interest rate policy.

Share holders

The shares in DOF Subsea AS are 100% owned by DOF Subsea Holding 2 AS.

The number of outstanding shares is 119 733 714 shares with a book value of NOK 42.52 per share.


As per 31st of March the number of employees in DOF Subsea Group was 1140 persons. The numbers does not include marine employees that are employed in DOF Sjø AS and Norskan S.A.

The fleet

The Group’s fleet compromise of 25 vessels including 3 new builds.

Events after balance day In April the company issued an unsecured 5 year bond of NOK 750 million in the Norwegian market. In connection with the new bond the company bought back bonds with a nominal value of NOK 144 million in the existing bond issue DOFSUB 03 Pro with maturity July 2012. In May DOFCON AS, a subsidiary of DOF Subsea AS, entered into an S&P agreement with the Court of Session, Edinburgh in respect of the vessel Sarah. The vessel was subject to a forced sale initiated by its mortgagees. The vessel is one year old and is of the type Ulstein SX 121 OCV/IRM design.

In May, the company entered into an MOU in order to sell the vessel Geosounder.

In May DOF Installer ASA launched a private placement of share for the amount of NOK 200 million in order to take delivery of Skandi Skansen. DOFCON AS, the majority owner of DOF Installer ASA, has underwritten the share issue and will subscribe 78.52 %.

Market outlook

The majority of the Group’s fleet is fixed on long term contracts.

In the second quarter the company will take delivery of 2 vessels, the Skandi Singapore and the Sarah tbn Skandi Constructor.

Accounting principles

The Quarterly report has been prepared in accordance with today’s International Financial Reporting Standard (IFRS) and Interpretations, and the IAS 34 standard for quarterly reporting. The preliminary financial statement is unaudited.

Changes in accounting estimates

The Group changed the estimation of useful life and residual values for vessels in the Group. Reduction in depreciation for Q1 2011 is due to changes in estimated useful life and excess value. The effects of these changes give a decreased depreciation of 50 MNOK.

Source: Dof Subsea  ,May 25, 2011;