Rem Takes Profit Dive

Norway’s Rem Offshore has posted second-quarter 2015 net profit of NOK 64.3 million ($7.8 million), down from NOK 105.8 million or $12.8 million in a year-ago period.

Net profit for the first half of 2015 (1H 2015) was also down at NOK 70.1 million ($8.5 million) versus NOK 183.2 million ($22.2 million) in the corresponding period in 2014.

In the second quarter, Rem recorded operating revenue of NOK 292.0 million compared to NOK 335.1 million in Q2 2014. 1H 2015 operating revenue were NOK 607.8 million, up   598.6 million).

Rem Offshore said it had 19 vessels in operation at the end of the period, namely 6 CSVs, 12 PSVs and one OCV, but decided to lay-up two PSVs until market conditions improve. The company also had an OCV under construction for delivery in the first quarter of 2017.

“The North Sea spot market was weak in the second quarter, especially in the PSV segment. AHTS rates were acceptable at times but very variable. PSV rates are well below operating expenses. There is still satisfactory activity in the subsea segment, but here too activity levels are in decline. The offshore market in general is expected to remain challenging for some time,” the company explained in Q2 report.

According to the company, the contract coverage for the rest of 2015 stands at around 62%.