Oceanteam Plans to Move Forward with Current Strategy

Oceanteam Shipping ASA, an offshore shipping company, has released its annual report 2013.

Haico Halbesma, Chief Executive Officer of Oceanteam Shipping ASA, stated in his letter:

“2013 was a year of consolidation and operational focus for Oceanteam Shipping ASA. In addition, new opportunities were identified and followed upon, which resulted in particular in a large back log for RentOcean and the establishment of DOT Shipping. This joint venture with Grupo Diavaz is to service the fast growing Mexican market.

The company started and completed several important initiatives. Based on the new growth strategy we strengthened our backlog and operational efficiency and also laid the foundation for sustainable growth going forward.

From early 2013 we have re-focused the company, improved both the balance sheet and our operations significantly and at the same time opened up for new types of work.

During the year we have established new initiatives and partnerships, with the focus on providing our clients with a more complete offering to form the basis for future growth. With a fiscally sound company structure, large deferred tax assets, a solid backlog and a healthy market throughout, we now turn our attention to growing and using the building blocks that have been put in place to deliver more integrated services.

The year 2012 was in many ways a year of financial transformation in which the company refinanced a total of $240 million in vessel and company debt. A $92.5 million unsecured bond placement towards the end of 2012 concluded the changes in the capital structure. As a result warrants could be exercised early 2013, which further improved the company’s liquidity and debt maturity profile resulting in a in a solid financial platform from which to operate. The bond market has already recognized the solidity of the company’s financial strategy as this is currently trading at 108 above par.

The year 2013 has been a year of operational improvement and focus on building new business lines. The Next Step programme has hampered the financial performance of KCI somewhat but at the same time is preparing  the company to deal with future challenges, which is key to its future success.

The operational improvement and solid backlog within subsidiaries RentOcean, OceanWind, KCI as well as the Shipping division, are a confirmation of the success of the company’s strategy so far. We now have to start leveraging the company’s core competences throughout the value chain. The companies are expected to prosper in the coming years and we are confident that the four business lines and management teams will show better and improved financial and operational performance going forward once The Next Step is completed in the second half of 2014.

It is the Board and Management’s intention that 2014 will be the year that Oceanteam demonstrates its ability to initiate significant growth.

For example, in late 2013 and early 2014 the company spent significant resources to position the company so that it can capture part of the expected strong growth of the Mexican market through a joint venture named DOT Shipping. This new company, owned by Grupo Diavaz and Oceanteam Shipping jointly was established in Q1 2014.

We are confident that the revised strategy will work and that during 2014 we will see some significant contracts being awarded.

We see an unprecedented number of opportunities going forward and the key is now to focus clearly on them. The Company has received the trust of clients and commitment from its teams, board and shareholders.  I am confident that during 2014 and 2015 we will succeed with executing our exciting plans and will be able to support our clients even better.

In the annual report 2013 there are changes in the presentation compared to what was presented in fourth quarter report due to IFRS 10. For first quarter 2014, CSV Southern Ocean will be reported as fully consolidated as presented in fourth quarter 2013 report. The other CSV vessels, Bourbon Oceanteam 101, North Ocean 102 and Pipe Lay Vessel North Ocean 105 will be reported after the equity method. For further details, please review the full quarterly and annual report for the company.”