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    Rem Offshore books a loss

    Company News // November 13, 2015

    Rem Offshore in Norway says that, despite a growing number of vessels being laid up, rates remain low and says that rates for PSVs and offshore construction vessels are below operating expenses. The company said the construction support vessel market has also deteriorated, with dwindling activity levels. "The offshore market is expected to remain challenging going forward," said the company.

    Excluding vessels laid up, the group’s contract coverage for 2016 stands at around 42 per cent, or 56 per cent including options. Rem has laid up three PSVs until market conditions improve.

    The company recorded operating revenue of NKr 313.6 million in the third quarter of 2015 (2014: 421.6 million).
    EBITDA for the period came to NKr 162.2 million (280.1 million), giving an EBITDA margin of 51.7 per cent (66.4 million). The company made a net loss for the period of NKr 19.1 million (compared to a profit of 162.2 million in the same quarter in 2014).

    The first nine months of 2015 secured operating revenue of NKr 921.4 million (1,020.2 million), EBITDA of NKr 477.9 million (622.3 million), an EBITDA margin of 51.9 per cent (61.0 per cent) and net profit of NKr 51.0 million (345.4 million).

    The company said that the market for the company’s vessels "will continue to be demanding" and measures to cut costs have been taken.

    As a consequence of having vessels in layup, the company has downsized the number of both crew and administrative workers.

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