Akastor Plunges Deeper into Red

Oilfield services investment company, Akastor, has booked a first-quarter 2016 loss on sharp decline in revenues caused by the weak market.

The Oslo-listed company recorded loss of NOK 366 million ($45.4 million) for the first quarter 2016 compared to loss off NOK 251 million ($31.1 million) in the corresponding quarter in 2015.

Akastor, as a group, generated 44 per cent lower revenue (NOK 2.56 billion) in the first quarter from the same quarter one year earlier. The lower revenue level has resulted in capacity costs impacting the overall EBITDA for the quarter.

EBITDA was NOK -12 million for the first quarter, down from NOK 177 million in 2015 first quarter. EBITDA in the quarter was impacted by restructuring costs of NOK 109 million, which were mostly related to downsizing in MHWirth. Depreciation, amortization and impairment amounted to NOK 281 million.

The company has six reporting segments: MHWirth, Frontica Business Solutions, AKOFS Offshore, KOP Surface Products, Fjords Processing and Real Estate & other holdings.

MHWirth and KOP have suffered the most due to the market slowdown. Personnel reductions throughout 2015, and into 2016, have been announced, leaving the Group with roughly 2 570 employees at the end of Q1 2016.

In addition, AKOFS Offshore, a provider of vessel based subsea well construction and intervention services to the oil and gas industry, had revenue of NOK 159 million in the first quarter compared to NOK 168 million a year earlier. The company employs 93 people.

Subsea World News Staff