Siem Offshore Stays Down

Siem Offshore has plunged deeper into the red, following a net loss in the previous quarter, as the challenging OSV market takes its toll.

The Oslo-listed company recorded net loss of $45 million compared to net profit of $12.1 million in the year-earlier period. The net loss attributable to shareholders was $43.9 million.

To remind, Siem Offshore also recorded a net loss of $25.5 million in the first quarter of 2015.

Siem’s operating revenues were $124.4 million, up from $114.2 million in Q2 2014. However, operating profit was a negative $30.5 million after depreciation and amortisation expenses of $26.4 million and impairment costs of $56 million.

For the first half of 2015 (1H 2015), despite the growth in operating revenues of some $42 million, the company said that the net loss attributable to shareholders was $69.5 million versus $26.7 million net profit in the corresponding period in 2014.

According to the company, the fleet in operation at the end of the second quarter totalled 46 vessels, including partly-owned vessels, two vessels in lay-up and two vessels operated on behalf of a pool member.

Siem had six Offshore Subsea Construction Vessels (OSCVs) in operation at the end of the quarter which earned operating revenues of $30.6 million and had 98% utilization.

The total contract backlog of firm contracts for the Offshore Support Vessels segment at June 30, 2015 was $1.35 billion, including Big Orange XVIII, Secunda and the vessels under construction.

In addition, the company approved a $100 million Rights Issue, and also earlier appointed Idar Hillersøy as Chief Executive Officer. The company’s largest shareholder, Siem Europe S.a r.l., has fully-underwritten the Rights Issue.

Subsea World News Staff