Solstad Offshore: waiting for the value of ships to be under pressure

Offshore companies Kjell Inge Røkke and John Fredriksen, Solstad Offshore, published their results for the third quarter last Tuesday evening.

Even if the results of the operations themselves seem better, they are still close to zero and the losses on the financial elements have therefore sent the company less NOK 447 million before taxes.

"The board will make it clear that the current financial situation is not sustainable," writes the company in its report.

Values ​​under pressure

Even after a massive restructuring last year, the offshore company has incurred very heavy debts to its banks and bondholders. At the end of the third quarter, net interest-bearing debt increased to NOK 27.7 million, compared to NOK 26.9 million.

At the same time, equity has been reduced to about NOK 3.3 million.

At the end of October, the debtor company announced that the winter was tough. The summer season was scrapped and Solstad announced that it would dialogue with its owners and lenders to improve the liquidity situation.

As a result, the company has not made any extraordinary depreciation, but indicates that the value of ships and equity should be under pressure in the future.

Unsustainable rates

The turnover for the three-month period amounted to NOK 1.4 billion, stable compared to the third quarter of last year.

"The market recovery is slow and rates are still not at sustainable levels," writes the company.

In addition, it indicates that due to the difficult market situation, financial developments in all companies of the group are closely monitored.

consolidation

Solstad Offshore has become the largest in the country after last year's Farstad, Deep Sea Supply and Rem Offshore companies, which were consolidated after a massive consolidation during which Kjell Inge Røkkes Aker and John Fredriksen pulled the longest. Straw.

This has occurred as a result of an oil braking which, since 2014, has hit activity, razed rats and sent boats in jets, resulting in a massive resignation of sailors.(Conditions)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our business using a link directly to our pages. The copy or any other form of use of all or part of the content may only be done by written authorization or as permitted by law. For other terms please see here.