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    Siem Industries remains committed to oil and gas

    News // May 24, 2016

    Siem Industries says it remians committed to the offshore oil and gas market, despite the downturn. In its Annual Report for 2015, published in early May 2016, the company said that, after experiencing a number of years with strong markets for offshore services, 2014 marked the beginning of a slowdown which accelerated in 2015.

    "The downturn is likely to last for several years," said Siem Industies. "Reduced day rates for the vessels in our group have affected the valuations of our fleets and the related impairments of goodwill and assets in Subsea 7 and Siem Offshore have been substantial."

    The company reported net income of US$228.8 million, or US$15.12 per share, attributable to shareholders for 2015.

    "We remain committed to the oil service industry and to the delivery of excellence in execution and predictability in performance and safety. It is expected that the offshore activity will continue to be affected by the cut-back of exploration and development capital among the operators through at least 2017," said Siem Industries.

    "We expect, however, that oil companies will again focus on the search for new reserves to replace the on-going depletion of production and reserves. The world is now consuming more oil than the discovery and development of new reserves. It remains evident that hydrocarbons will continue to be the world’s main source of energy for several decades to come and the present situation is not sustainable. Our fleets are young and have a long productive usage ahead. Our focus during the downturn is to preserve cash and to secure employment. The lay-up of vessels that do not have employment is necessary to reduce costs."

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