DOF Subsea Sees Earnings Drop

DOF Subsea, a subsidiary of DOF Group, reported profit in the third-quarter 2017 of NOK 138 million (close to $17 million), compared with profit of NOK 170 million ($20.8 million) in the corresponding period in 2016.

Sequentially, profit was increased from NOK 88 million or $10.8 million.

In the third quarter ended September 30, 2017, the Bergen-based company had operating income of NOK 899 million versus NOK 1.13 billion same time last year.

For the Q3 2017 period, DOF Subsea had net financial income of NOK 168 million, versus NOK 129 million in the prior-year comparable period.

The Norwegian subsea services player booked quarterly depreciation and impairment of NOK 326 million against NOK 334 million in Q3 2016. EBIT came at negative NOK 41 million offset by unrealised net gain on derivative instruments and currency position of NOK 262 million.

As of September 30, 2017, the Group’s fleet comprised 22 owned vessels, 2 chartered-in vessels, 2 vessels under construction and ROV fleet of 71 units.

During the quarter the vessel utilization was 74%, where the project vessel utilization was 70% and the TC vessel utilization was 82%. Backlog at the end of the quarter stood at NOK 16.3 billion, with options of NOK 34.3 billion.

In addition, at the end of the quarter the number of employees in the DOF Subsea was 1 287 persons, up from 1 278 the company reported at the end of the third quarter of 2016. The numbers do not include marine employees that are employed in DOF Management and Norskan, the company noted.

Year-to-date 2017

For the first nine months of 2017, the Group had an operating income of NOK 2.8 billion, EBITDA of NOK 843 million and an EBIT of NOK 45 million after depreciation and impairment of NOK 798 million. Net financial income was NOK 46 million giving a profit before tax of NOK 91 million, down from NOK 673 million in 2016 .

“The financial numbers for 3rd quarter of 2017 are below the board of directors’ expectations, especially in the Asia Pacific region.

The board of directors expects the challenging market conditions to continue and expects the market to be challenging in 2018, especially during the first half of the year.

However, with an oil price of USD 60 per barrel, the board sees that the oil producers have increased their tendering activity which may indicate that we can expect the subsea market to gradually improve and give higher utilisation for the Group’s personnel and assets,” DOF Subsea said in Q1 2017 earnings report.

DOF Subsea shares are owned by DOF ASA (51%), FRC Lux Holding (42.7%) and Dolphin Invest 2 AS (6.3%). To remind, changes in the shareholders are the result of a reverse merger, effective January 2017, between DOF Subsea and DOF Subsea Holding.

Subsea World News Staff