Solstad back in black; Eyes more renewables work

Norwegian shipowner Solstad Offshore has bounced back in black as a result of successful financial restructuring.

The company posted quarterly profit of NOK 11.43 billion, compared to NOK 1.19 loss same time last year.

Full-year result was positive, with profit of NOK 7.23 billion, against NOK 3 billion loss in 2019.

Revenue for the fourth quarter of 2020 was NOK 1.17 billion, versus NOK 1.25 billion in 2019, while EBITDA adjusted for the fourth quarter was NOK 204 million, against NOK 265 million in 2019.

Revenues for year to date 2020 reduced at NOK 5 billion from NOK 5.24 billion in 2019.

Operating income for 4Q 2020 amounted to NOK 1.17 billion compared to NOK 1.25 billion in 4Q 2019.

In addition, due to the restructuring Solstad realised currency loss of NOK 246 million. As a result of the successful restructuring net financial income is in 4Q 2020 positive with NOK 11.7 billion mainly driven by debt to equity conversion.

During 4Q 2020, the currency exchange rate for USD versus NOK has weakened. This resulted in a positive unrealiSed currency effect relating to the company’s assets and debt of NOK 533 million.

Impairment charges totaling NOK 72 million incurred in the quarter mainly related to write down of non-strategic scrapping fleet.

EBITDA adjusted for 2020 was NOK 1.29 billion, against NOK 1.41 billion in 2019.

The overall utilisation for the operational fleet in 4Q 2020 was 80 per cent, the subsea CSV fleet had a utilization of 72 per cent (81 per cent).

“The COVID-19 pandemic and the decline in the offshore activity will affect the company’s revenues, utilization and increased cost, also going forward,” Solstad said.

Total current assets at the end Q4 were NOK 3.84 billion, of which cash and cash equivalents NOK 2.41 billion.

Solstad today has a fleet of 126 vessels, a part of the financial and operational restructuring finalised in October 2020, was also to revitalise the fleet and divest part of the fleet that would form part of the future Solstad.

In 2020, about 10 per cent of the company revenues came from offshore wind. Solstad expects to increase that number significantly going forward. However, it plans to explore opportunities within other renewable sources such as floating solar parks and wave power technologies.

As per December 2020 the company has nearly 3, 300 employees with 10 offices globally.