Axis Offshore posts 3Q loss. Awaits ‘Axis Nova’ sea trials

Axis Offshore, a provider of flotels servicing the offshore oil & gas industry, has posted a net loss in the third quarter 2015 and a drop in revenues. In addition, the company has reported that one of its newbuild flotels is scheduled to start sea trials soon. 

According to Axis Offshore’s 3Q 2015 report on Thursday, its net loss for the third quarter of 2015 quarter was $3.1 million against a profit of $1.5 million in the same period last year.

Revenue for 3Q 2015 was $11.2 million, down from $11.6 million in 3Q 2014 mainly due to currency effects on the portion of the Dan Swift charter hire which is denominated in Brazilian real.

During the quarter, capitalized expenditures for the new-buildings under construction increased by $1.5 million to $66.4 million during the quarter. The Group’s net interest bearing debt decreased by $4.4 million to $113.3 million during the quarter.

Flotels

Axis Offshore has one flotel in operation, the Dan Swift, currently under contract with Petrobras in Brazil, and two flotels under construction at Cosco’s yard in China, the Axis Nova and Axis Vega.

According to Axis Offshore’s report, Axis Nova continued construction, commissioning and mechanical completion during the quarter and sea trials are planned to start late in 2015.

In July 2015, Axis and Cosco agreed to postpone the delivery of flotel Axis Nova from the first quarter of 2015 to July 2016.

Axis also said on Thursday that completion of Axis Nova was expected in early 2016.

According to the contract with Cosco from September 2013, the company’s second flotel, the Axis Vega, is due for delivery by the end of 2015. As the company provided no progress report about the construction of this flotel, Offshore Energy Today reached out to Axis Offshore in order to find out whether the flotel is still scheduled for delivery in 2015. Axis Offshore was not immediately available for comment.

Axis Nova and Axis Vega are based on the GM500A design in compliance with Norwegian rules. The flotels have 11.5 meter operational air-gap, dynamic positioning systems (DP3) as well as mooring to enable year-round operability in the North Sea.

Offshore Energy Today Staff