Farstad makes a loss in the third quarter - doesn't expect growth in 2016Company News // November 11, 2015
Farstad Shipping made a loss in the third quarter of 2015. "Our general market outlook has not changed significantly in the last quarter," said the company. "All regions and markets are characterized by pressure on rate levels due to substantial tonnage surplus and expected rate reductions from the oil companies.
"The market challenges for the industry have resulted in an increasing number of offshore service vessels being laid up in the quarter. The low oil price and the strong focus on cost reductions in the offshore industry means that there is not expected to be any growth in the activity level offshore in 2016.
"Hence, there is also not expected to be any short-term improvements in the market conditions in our key markets.
Contracting activity has stopped, but there is still a significant number of offshore vessels on order."
The company achieved an operating income of NKr 969.3 million for the third quarter.
Operating profit (EBIT) was NKr 73.6 million. Profit after taxes was negative NKr 435.3 million, including an unrealized currency loss of NKr 355.6 million.
Operating income at 30 September was NKr 3,071.2 million. Operating profit (EBIT) was NKr 168.2 million. The profit after taxes was negative NKr 859.1 million including an unrealized currency loss of NKr 517.3 million.