Siem Offshore Narrows Losses

Siem Offshore has managed to shrink its quarterly loss, despite weaker revenue, as fleet write-downs were much lower compared to same time last year, and a bargain purchase gain boosted the company’s bottom line in the second quarter of 2016.

The Oslo-listed company recognised net loss of $7.9 million, or 1 cent per diluted share, compared to net loss of $45 million, or 11 cents per diluted share, in the year-ago quarter. The net loss attributable to shareholders was $6.6 million versus $43.9 million.

In addition, for the first six months of 2016, Siem Offshore narrowed its negative result attributable to shareholders by some 78 percent and has booked a net loss of $15.6 million, or 2 cents per share, against $69.4 million, or 18 cents per share net loss in the first half of 2015.

Siem’s operating revenues for the quarter were $99.6 million, down from $124.4 million in Q2 2015. Submarine power cable activities were the company’s best performing segment with close to $37 million.

For the six months of 2016, revenues were at $170.3 million, versus $250.4 million in the corresponding period in 2015.

The company recorded quarterly impairment expenses of some $1.2 million, related to fleet write-downs, against last year’s $56 million.

During the second quarter, Siem Offshore acquired the remaining 50% interest in Secunda, and as a result recognized a bargain purchase gain of USD 18.3 million. In addition, the company recognized currency exchange loss of some $7 million (close to $11 million gain in Q2 2015).

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

Siem had five offshore subsea construction vessels (OSCVs) in operation at the end of the quarter that earned operating revenues of $16.3 million with 96 percent utilization. Same time last year, the OSCV segment generated revenues of $30.6 million and 98 percent utilisation.

Subsea World News Staff