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    Focus on CSV segment cushions Solstad from worst effects of downturn

    Company News // May 20, 2015

    Solstad Offshore says it entered into several new contracts and contract renewals in the first quarter of 2015, and has "satisfactory" contract coverage for the remaining part of the year and into 2016.

    "In general, the outlook is negatively characterized by reduced investments from the oil companies in drilling and subsea projects, uncertainties related to the situation in Brazil, and the effect of the sanctions between EU/USA and Russia," said the company in its first quarter results.

    "It is expected that the unbalance between supply and demand of offshore vessels will increase, particularly in the PSV segment.

    "In the construction support vessel (CSV) segment, which is the company’s main segment, the situation is better. For the AHTS segment, the development in the rig activity and the situation in Brazil is crucial for development."

    At the beginning of second quarter, the group had firm contracts of approximately NKr 2.6 billion for the remainder of 2015.

    Including options, the value of contracts for the remaining three quarters in 2015
    is approximately NKr 2.9 billion.

    Based on number of charter days the contract coverage is 62 per cent for the same period and 71 per cent, including options.

    For 2016 the value of contracts is NKr 2.6 billion (NKr 3.4 billion including options) and contract coverage is 36 per cent (50 per cent including options).


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