SBM Feels Weak Market Sting as DSCV ‘SBM Installer’ Hurts Its Bottom Line
- Project & Tenders
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