Deep Sea Supply reports "solid operational performance"Company News // May 24, 2013
Deep Sea Supply (DESS) in Norway reported consolidated revenues of US$38.7 million in the first quarter of 2013 compared to US$21.4 million in the same quarter in 2012. Total operating expenses in the first quarter of 2013 were US$23.3 million compared to US$17.7 million in the first quarter of 2012.
This resulted in EBITDA of US$16.7 million compared to US$4.9 million in the first quarter of 2012.
The company said the high contract coverage and firm contract backlog of US$297 million as of 1 May 2013 provides good earnings visibility during 2013 and 2014.
The company has removed 2 vessels from the North Sea spot market to commence term charter contracts in Brazil, and therefore currently has one vessel operating in the North Sea spot market.
"The progress of the sale of 50 per cent of DESS' Brazilian business to BTG Pactual in Brazil is good," said the company, noting that all necessary third party approvals have been obtained and the company expects to close the transaction end of May.
"By establishing this joint venture and buying six newbuilding PSVs together with BTG, the JV will own a fleet of 21 vessels and be the third largest OSV owner in Brazil, one of the world's largest markets for OSVs," the company said.
The company also sees attractive opportunities in areas such as West Africa and Asia, and will actively seek to increase its fleet and further strengthen its position by focusing more on such areas.
DESS said it remains "cautiously optimistic" for the OSV market in 2013. "Many new rigs will be delivered this year, which is positive, and moving the supply/demand balance in favour of OSV owners," it said.
"A number of OSVs (especially PSVs) were ordered in 2012, but the company is also experiencing continued, increased demand for large and modern PSVs. Tendering activity is high internationally. Increased activity, both in established and new markets, continue to drive demand for large and modern OSVs, and Deep Sea Supply's fleet of cost efficient vessels is well positioned to take part of this development," the company concluded.