Floatel records net loss in 1Q

Floatel International Ltd reported a net loss for the first quarter of 2014 of $0.8 million

Consolidated revenues for the first quarter amounted to USD 50.2 million (38.6 in Q1 2013). The operating expenses amounted to USD -36.3 million (-18.1). EBITDA for the quarter came to USD 14.0 million (20.5).
EBITDA was impacted by the scheduled stops for Floatel Superior and Floatel Reliance as well as the net impact of Floatel Victory’s transit from Singapore and the mobilization in the Gulf of Mexico.

Net financial items were USD -10.0 million (-6.8). The net income for the first quarter was USD -0.8 million (8.8). The current backlog based on committed work was at the end of reporting period approximately USD 752 million excluding options (683).

Market Outlook 

“The worldwide semi-submersible accommodation fleet’s utilization remained very high in 2013 and we expect a similarly high activity level next coming years. We believe that the availability in the high specification semi-submersible accommodation market will remain tight during the coming years especially for modern rigs equipped with dynamic positioning,” said the company.

“This is mainly due to the continued high activity levels of the oil and gas companies and also the fact that the trend in the industry is moving to harsher environments and deeper water.

“Several clients are also specifying age restrictions to ensure no compromise on quality and safety, meaning that older vessels will not be invited to bid. The average age of the 18 semi-submersible accommodation vessels delivered before 1987 is reaching 33 years.

“The worldwide operating semi-submersible accommodation fleet presently comprises 22 vessels. Following delivery of Floatel Victory and recent new building orders, 10 vessels are currently under construction for delivery in or before 2016 whereof two are for Floatel International. It is anticipated that several older units will exit the market place in the coming years.”