Deep Sea Supply reports solid operations, challenging conditions and no dividend paymentCompany News // February 25, 2015
For the fourth quarter of 2014, Deep Sea Supply has reported consolidated revenues
of US$44.1 million and EBITDA of US$21.7 million (49 per cent). In addition to ordinary depreciation and financial expenses, the company has also made impairments of US$9.4 million and other write-offs of US$4.2 million. Following negative currency items of US$2.0 million and financial expenses of US$6.0 million, the pre-tax profit was negative US$11.9 million.
For the twelve months period ended 31 December 2014, the company reported consolidated revenues of US$163.1 million, EBITDA of US$83.6 million (51 per cent) and a pre-tax result of US$2.5 million.
The company's contract backlog of US$220 million as of 1 January 2015 provides good
earnings visibility for 2015. The contract coverage for 2016 is, however, lower, so Deep Sea Supply says its main challenge will be to secure increased contract coverage for
2016 and onwards.
The Board of Directors said they believe the current weakness in the market will result
in a better supply-demand balance in the long run. "With a modern fleet and healthy balance sheet Deep Sea Supply should be in a good position to sustain the current
downturn and take advantage if the market recovers," said the company in a statement.
"Deep Sea Supply has a strong balance sheet and a comfortable cash position, but due to the uncertain market outlook in the offshore supply market, the Board of Directors
has decided to be cautious and not to distribute a dividend to shareholders in relation to the fourth quarter of 2014," the statement concluded.