Idle Jack-Ups Hit Fred. Olsen Ocean in Q1

Fred. Olsen Ocean has reported NOK 145 million (EUR 15 million) operating revenue in the first quarter of 2018, a 60.2% slide compared to NOK 364 operating revenue in Q1 2017, attributed mainly to the underutilisation of the jack-up installation vessels Brave Tern and Bold Tern.

Revenue from Brave Tern and Bold Tern, operated by Fred. Olsen Windcarrier, was lower than the same quarter last year due to significantly lower utilization, Bonheur ASA, the owner of Fred. Olsen Ocean, said in a financial report.

One vessel was idle through the quarter while the other vessel was in drydock for scheduled periodic maintenance following which it performed Operation & Maintenance work during the quarter.

The aggregate utilization rate of the two jack-ups during the quarter was 7%.

The utilisation percentage of the two jack-ups is expected to increase in the second quarter of 2018. AIS data positions Brave Tern on the Walney offshore wind farm off the UK, while Bold Tern this week left the Port of Esbjerg in Denmark to start installing wind turbines on the Borkum Riffgrund 2 wind farm in the German North Sea.

Fred. Olsen Windcarrier AS owns Fred. Olsen Windcarrier A/S Denmark, which owns a fleet of crew transfer vessels (CTVs) and 75.5 % of Global Wind Service A/S (GWS), an international supplier of personnel to the global wind turbine industry.

Income and EBITDA in GWS and for the crew transfer vessels is typically seasonally low in the first quarter and results are also lower in 1Q18 compared to 1Q17, according to the report.

Apart from Fred. Olsen Windcarrier, Fred. Olsen Ocean’s results include the performance of Universal Foundation Norway AS, offering offshore wind turbine foundations.

Overall, Fred. Olsen Ocean’s EBITDA for the quarter decreased from NOK 96 million in 1Q17 to NOK -77 million in 1Q18.