Oceanteam cancels CSV deal, returns to profit in 2017

Oceanteam, a Dutch/Norwegian Offshore service provider, has terminated agreements for purchase and bareboat chartering of the vessel Tampamachoco 1, writing off $11 million in its 2017 accounts as part of its investment in the newbuild vessel. 

Oceanteam’s subsidiary, Diavaz-Oceanteam (DOT) Shipping, has a 50 percent interest in Tampamachoco 1, a new construction support vessel which is owned through a joint venture between DOT Shipping and Singapore’s Pacific Radiance.

Before it was even completed, the vessel secured a long-term time charter in Mexico. However, in December 2016 the joint venture between DOT and Pacific agreed with the client to defer delivery of the vessel under the charter party to December 31, 2017.

In its report for FY 2017 on Saturday, Oceanteam said that, in light of the current state of the market, DOT Shipping and Pacific Radiance have mutually agreed to terminate agreements for purchase and bareboat chartering of the vessel Tampamachoco 1 without further liability to Diavaz-Oceanteam.

Diavaz-Oceanteam have terminated the bareboat charter contract on February 15, 2018. Oceanteam has written off its part of the investment in the CSV Tampamachoco 1 in the amount of $11 million.

Also on Saturday, Oceanteam posted a profit of $11.7 million for 2017 compared to a loss of $23.3 million in 2016.

The company’s revenues dropped to $35.5 million in 2017 from $41.9 million in 2016.

Commenting on the company’s performance in FY 2017, Haico Halbesma, Oceanteam CEO, said: “2017 in particular was an unprecedented roller coaster ride from many perspectives. Unfortunately our market performance, new activities and client rewards have been publicly overshadowed by negative publicity created by some minor shareholders, former management and former advisors. For obvious legal reasons we decided not to comment as yet on the many fables and false allegations.”

Halbesma was referring to Oceanteam’s problem which came as a result of the company’s lack of auditor in Norway, suspended in November 2017. The latest development in this story was the extension of the period granted to the company to appoint and register a new auditor until April 15, 2018.

It is worth mentioning that, if the company fails to remedy this matter by the deadline, the Register of Business Enterprises will notify the District Court of this, which may result in a compulsory liquidation of the company.

Halbesma continued: “The good news is that our company is doing very well from an operationally point of view. We have aligned our balance sheet and P&L with market peers and our indirect costs (overhead) are significantly down compared to previous years.

“In addition, we are confident to further conclude and solve all pending issues during H1 2018 and find the best solutions to preserve the value of the company in the benefit of all our shareholders.”

It is also worth mentioning that Oceanteam earlier in February announced its intention to perform a cross border merger with its Dutch subsidiary which would solve the auditor situation and the associated risk of a value destructive forced liquidation.

The company’s board will propose this plan at the extraordinary general meeting to be held on April 10. If the plan gets approved, the company will be deleted in the Norwegian Register of Enterprises when the merger enters into force and its shares delisted from the Oslo Stock Exchange.

Offshore Energy Today Staff