Farstad Shipping: Loss on Accounts Receivable in 4Q 2010 (Norway)

In  accounts for the 4th quarter 2010 Farstad Shipping will be booking a loss on accounts receivable of approx NOK 46 million related to freight income earned by one of its’ vessels which this autumn was contracted by the UK company Subocean Group.

Subocean Group went into administration last week Friday. According to a newspaper article published on Monday 31st January the company’s assets have been sold to Technip. Based upon this fact Farstad Shipping has decided to write down in the 4th quarter’s accounts its total outstanding amount.

Farstad Shipping’s fleet currently consists of 58 vessels (32 AHTS, 24 PSV and 2 SUBSEA) and 4 PSV under construction. The company’s operations are run from Aalesund, Aberdeen, Melbourne, Perth, Singapore, Macaé and Rio de Janeiro by a total of 1820 employees onshore and offshore. The company’s strategy is to be a major international supplier of large, modern offshore service vessels to the oil industry.  We also remain committed to solid long-term charter profile for the fleet.

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Source: Farstad, February  2, 2011;