Oceanteam Narrows Loss

Oslo-listed Oceanteam has booked net loss of some $600K for the third quarter ended September 30, 2016.

This result compares with $6 million loss in the corresponding period in 2015.

The Norwegian-Dutch offshore service provider generated $11 million in operating revenues, down approximately 16% compared to $11.9 million in the same period last year.

Nine-months 2016 revenue stood at $42.7 million, versus last year’s $45.2 million.

Earnings for the nine months of 2016 came out negative $30.6 million, narrowing the last year’s loss of $32.2 million.

Oceanteam CEO Haico Halbesma: Oceanteam succeeded in sustaining occupancy and revenues when building long term backlog for its shipping business unit under very challenging market conditions. Oceanteam Solutions division has shown an ongoing high level of activity and has made a promising and exciting entrance into the Chinese renewables market.

While the Company has proven that it is operationally and strategically agile, with a solid business model, the company’s financial situation is challenging. The company is facing financial restraints due to its current high cost of capital and its (2017) maturing debt capital structure, which is restricting the ability to develop in what the company believes is in the interest of its stakeholders.

Few weeks ago, Oceanteam informed it has initiated talks with its stakeholders to shape its financial restructuring process and improve the financial flexibility in today’s challenging market situation.

Wilhelm Bøhn has been appointed as interim chief financial officer to lead the current financial restructuring process.

Subsea World News Staff