Eidesvik Offshore expects healthy PSV market in North Sea

Eidesvik Offshore has announced in their quarterly results that the operating profit (EBIT) for Q4 2013 was MNOK 81,0 compared to MNOK 44,0 for the same period last year.

Operating income was MNOK 237,9 compared to MNOK 223,7 for the same period last year. Profit for the quarter was MNOK 31,8 compared to MNOK 38,5 for the same period last year.

Operating profit (EBIT) for the whole year 2013 was MNOK 309,9 compared to MNOK 292,3 for 2012. This includes recorded gains on sale of vessels of MNOK 50,5 in 2013 and MNOK 78,2 in 2012. The Operating income for 2013 was MNOK 993,7 compared to MNOK 980,5 for 2012. Profit for 2013 was MNOK 140,9 compared to MNOK 282,2 last year.

The recorded profit both in the Quarter and in the whole year is significantly influenced by unrealized currency loss from loan and derivatives with USD exposure. For the whole year, an unrealized loss of MNOK 104,6 is recorded this year compared to an unrealized gain of MNOK 49,9 that was recorded last year.

“Due to a weak spot market for our PSV’s in the North Sea, Viking Nereus was laid up in the Quarter. We expect the vessel to be in operation again during 1st Quarter 2014,” the company added.

“Eidesvik has during 1st Quarter 2014 entered into a long term contract with Lundin Norway AS for the supply vessel Viking Queen. We are very pleased that we once again have been chosen by Lunding Norway AS, a company which is in an exciting development phase. For Eidesvik as a pioneer with the use of LNG as fuel for its PSVs, we appreciate a lot that Lundin once again charter in a LNG-fueled PSV to its portfolio,” says Jan Fredrik Meling (CEO).

Outlook

“The Board expects that the market for platform supply vessels in the North Sea will be healthy in 2014. This as a result of seasonal project work will absorb vessels in addition to general high activity. The global subsea market is expected to remain strong with substantial activity. As a result of postponed projects some uncertainty can be observed in the market.

The underlying drivers for the segments we operate in are all looking positive going forward with high exploration and development of new and existing fields in many areas,” Eidesvik said in a press release.

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Press Release, February 27, 2014