Siem Offshore vessel Siem Sparefish

Siem Offshore trims quarterly loss

Oslo-listed marine contractor Siem Offshore has reduced its Q4 2020 deficit despite revenue drop of 20 per cent against prior-year quarter.

Siem Spearfish recently secured a contract with an undisclosed client; Courtesy: Siem Offshore

Quarterly operating revenues were $57 million, compared to $71 million in Q4 2019.

The decrease in revenues from 4Q 2019 is mainly due to lower revenues from the AHTS fleet, the Brazilian and the Canadian fleets.

Siem Offshore recognised net loss of $41 million, versus $55.6 million loss in the fourth quarter of 2019.

Depreciation, amortisation and impairment charges amounted to $42.2 million, against approximately $75 million same time last year.

Q4 was as difficult as feared, with low utilisation and low daily rates, especially within the AHTS and Offshore Construction segments, which forced more vessels into lay-up.

At 31 December 2020, the fleet totalled 31 vessels (2019: 35 vessels), including partly-owned vessels. One Canadian vessel was sold and delivered to the buyer in December 2020. 7 vessels were in lay-up at the end of the quarter. In addition to its own fleet of 31 vessels, the company performs ship-management for 4 vessels.

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The company had 4 OSCVs and 2 WIVs at the end of the quarter. The OSCVs and WIVs earned operating revenues of $23.1 million and had 70 per cent utilisation excluding one vessel in lay-up (2019: $24.0 million and 95 per cent).

For the year 2020, Siem Offshore booked net loss of $299 million on revenue of $245 million.

This compares to net loss of $88 million on revenue of $292 million in 2019.

In addition to revenue drop, full-year results saw increased fleet impairment from $59 million in 2019 at $277 million.

Backlog and Outlook

“The winter market will be slow, but we see signs that the activity for the summer period commencing in April will increase with more drilling campaigns in the North Sea and in offshore wind will maintain good activity for the Offshore Support Vessel (OSV) segment. This should create an increase in demand for the company’s AHTS and PSV segments,” Siem Offshore said in its earnings report.

The total backlog at 31 December 2020 was $483 million, with $201 million for execution in 2021.

Siem Offshore had net cash flow from operations for the fiscal year 2020 was $35 million; and the cash position at 31 December 2020 was $103 million.