Dolphin in Insolvency Alert
The seismic market could see one of its players go under as Norway’s Dolphin struggles to secure sufficient funds to support its business.
The Oslo-listed firm looked for ways to solve its debt and obligations, however, it has not reached an agreement with the main stakeholders that would allow the seismic contractor to complete its financial restructuring.
Dolphin slumped into loss in the third quarter, recording a negative result of some $31 million, on restructuring charges and as revenues declined on weak market and contract delays.
The company was additionally forced to return two ships, Sanco Sword and Sanco Swift, which later on went to another seismic player.
In today’s filing to Oslo Stock Exchange, Dolphin said that its board of directors believes that “current business cannot be continued as it is currently carried out”.
Furthermore, the company, reporting backlog of USD 91 million as of October 1, 2015 compared to $340 backlog from the prior-year quarter, is said to be resolved to search for alternative solutions, and unless a sufficiently acceptable solution has soon been reached with its relevant stakeholders, it will have no choice but to file for insolvent liquidation of the company.
Subsea World News Staff