DOF Subsea Returns to Profit as Group Seeks Refinancing Deal

DOF Subsea, a subsidiary of DOF Group, reported profit in the second quarter of 2019 of NOK 14 million ($1.5 million), compared to loss of NOK 292 million ($32.4 million) in the corresponding period in 2018.

Year-to-date result for 2019 came out negative, with loss of NOK 10 million ($1.1 million), against loss of NOK 112 million ($12.4 million) in the six months of 2018.

In the quarter ended June 30, 2019, the Bergen-based company had operating revenue of NOK 962 million, down from the corresponding period in 2018 (NOK 999 million).

Operating revenue in the first six months of 2019 was at NOK 1.8 billion, versus NOK 1.83 billion in 2018.

The Norwegian subsea services player didn’t have noticeable Unrealised net gain / loss on derivative instruments and currency position, when compared to prior-year and NOK 276 million charges in Q2 2018.

Depreciation and impairments were almost relatively flat with last year at NOK 191 million.

As of June 30, 2019, the Group’s fleet comprised 24 owned vessels, 3 chartered-in vessels and ROV fleet of 74 units. Number of subsea employees was 1,239.

During the quarter the vessel utilization was 70%, where the projects vessel utilization was 67% and the TC vessel utilization was 77%.

Backlog at the end of the quarter stood at NOK 13.8 billion. However, the company noted it is exposed to the short-term market conditions in the subsea/IMR projects segment, and the backlog on some of the key assets in this segment are low.

During the quarter the Group faced difficulties of obtaining a long-term refinancing of a vessel and was given extension of this loan until end of November. The Group said it is working on a long term financial solution.

Subsea World News Staff