Farstad Slumps to Loss

Norway’s Farstad Shipping has seen red in the second quarter of 2015 as impairments and currency losses drove the company into a loss.

Namely, Farstad’s profit after taxes (PAT) was negative NOK 119.5 million, versus positive PAT of NOK 46.7 million a year earlier. Furthermore, first-half (1H 2015) profit after taxes was negative NOK 423.8 million, compared to positive PAT of NOK 126.2 million in 1H 2014.

The company’s largest shareholder with 40.5% remains Tyrholm & Farstad AS. Diluted profit per share was negative NOK 3.07

The company achieved operating income of NOK 1,038.8 million for the second quarter, down from NOK 1,050.6 million in Q2 2014. The operating income for the first six months was NOK 2,101.9 million, up from NOK 2,060.3 million in 1H 2014.

Farstad booked depreciations and impairments of NOK 395.9 million and currency losses of NOK 32.7 million during the second quarter, while 1H 2015 depreciations and impairments were NOK 636.4 million compared to NOK 367.1 million in 1H 2014. Impairments totaling NOK 170.0 million were booked on nine of the company’s vessels during the second quarter.

Farstad Shipping’s subsea fleet currently consists of 6 vessels and 1 under construction, scheduled for delivery in November next year.

At the end of second quarter, Farstad reported a total backlog (excl. options) of approximately NOK 6.8 billion and 2100 employees in total.