Loss widens for Bluewater

Bluewater Holdings bv, a Dutch supplier of floating production units and mooring systems to the international offshore oil and gas clients, has reported a deeper loss for the first half of 2014.

The net result after tax for the six-month period ended June 30, 2014 was $67.3 million loss compared to $50.9 million loss for the six-month period ended June 30, 2013.

EBITDA for the six-month period ended June 30, 2014 was $86.0 million compared to U.S.$96.9 million for the six-month period ended June 30, 2013.

The financial results for the first half year 2014 were mainly impacted by the following:

The company’s single point mooring (SPM) division generated U.S.$12.7 million EBITDA for the six-month period ended June 30, 2014 compared to $17.3 million EBITDA in the six-month period ended June 30, 2013. Progress on the company’s  current SPM projects is in early stages, resulting in a relatively low EBITDA contribution for the first half year of 2014. In the first half year of 2013, several SPM projects were in an advanced stage of completion, resulting in higher
EBITDA.

SPMs are used to transfer fluids to and from a floating production unit, an offshore storage vessel or shuttle tanker while securing the unit, vessel or tanker to the ocean floor

Related: Bluewater takes part in Total’s Kaombo project

EBITDA for the FPSO division for the six-month period ended June 30, 2014 was U.S.$78.9 million compared to U.S.$86.4 million for the six-month period ended June 30, 2013. The$7.5 million decrease in EBITDA compared to the first half year of 2013 was caused by a U.S.$3.0 million EBITDA reduction for the FPSO Glas Dowr due to higher operational expenditures and lower production income, both resulting from gas compressor failures.

Additionally, EBITDA of the FPSO Aoka Mizu decreased by U.S.$2.5 million due to declining field production and repair costs related to the water injection swivel. Finally, EBITDA of the FPSO Haewene Brim decreased by U.S.$2.0 million mainly due to higher operational maintenance costs.

Related: Lundin CEO blames Shell, Bluewater for Brynhild delays

The FPSO Haewene Brim has been back on location since November 16, 2013 and preparations are ongoing to prepare the vessel for recommencement of production on the Pierce field and start-up of the Brynhild field.

The costs related to the modification and life time extension work to prepare the vessel for tie-in and production of the Brynhild field are fully reimbursed by the Brynhild field owners.

During the first half year of 2014, such costs, amounting to US$42.4 million, have been capitalized and related revenues have been deferred, “resulting in nil impact on EBITDA.” The company says that the income will be recognized once oil production on the Brynhild field starts and will be offset by depreciation of the capitalized costs.