Oceanteam reaping benefits of diversification strategyCompany News // May 27, 2015
Oceanteam Shipping says it is reaping the benefits of its diversification strategy, which has allowed the company to sustain and improve its performance, even during challenging market conditions.
Since 2012 Oceanteam has developed several new business areas as part of Oceanteam Solution, in addition to its shipping activities. About 50 per cent of Oceanteam's revenues come from solution driven services. 2Our strategy is to sustain this revenue split," said the company.
"The recent volatility in key markets has demonstrated that Oceanteam has in place a scalable and flexible business model," said the company.
The first quarter was the first quarter on which the company reported without earnings from its 50 per cent stake in the CSV North Ocean 102, which it recently sold to J Ray McDermott.
"The sale of the 102 deleveraged the company significantly and underpins the other central pillar of our strategy, strict capital discipline," said Oceanteam.
In April a US$35 million installment was paid on the company's bond loan. The transaction is part of the company's long-term strategy to optimize and to strengthen its balance sheet.
"Strict capital and cost discipline combined with reduced leverage will allow the company to replace high cost capital with more flexible capital structures that will facilitate the company to grow its earnings going forward with a significantly reduced cost of capital," the company said.
At the beginning of this year Oceanteam Solutions closed a Euros 15 million revolving term loan provided by NIBC Bank NV. Proceeds under the facility will be used for investments in the company's equipment pool and services and can be drawn against new backlog.
"Improved funding conditions, as demonstrated by the two new loan facilities entered into 2015, reconfirms our focus on integrated services, growing markets beyond the volatile oil and gas, such as offshore renewables, plus certain carefully selected high potential regions like Mexico. We believe this will accelerate growth and value creation in the coming years," the company concluded.