SBM Feels Weak Market Sting as DSCV ‘SBM Installer’ Hurts Its Bottom Line
Dutch company SBM Offshore has lowered its forecast for operating profit (EBITDA) in 2016 as it will recognise a write-down of $30 million on a contract around a diving support and construction vessel (DSCV) SBM Installer.
Due to the continuing downturn in the oil industry, the operating profit is now estimated at $720 million because the vessel’s projected utilisation has decreased and resulted in classification of its long-term charter deal as ‘onerous’.
To remind, the SBM Installer was sold in 2014 to OS Installer AS, joint venture between Ocean Yield (75%) and SBM Offshore (25%), for $150 million in cash. The vessel was then chartered back to SBM Holding (SBM) for a fixed period of 12 years on a “hell and high water” bareboat contract.
The DSCV SBM Installer is based on the MT-6024 design from Marin Teknikk in Norway and built by Keppel Singmarine, Singapore, in 2013.
Subsea World News Staff