Eidesvik appoints adviser with eye on 2018 loan deadlineCompany News // November 17, 2016
Eidesvik Offshore says 2018 will be a key year for the company and it needs to see an improvement in the market by then.
The company has a NKr300 million (US$35.5 million) bond loan with a maturity date in the second quarter of 2018, and says that, if the market “does not improve considerably” by 2018, Eidesvik offshore group “will not be able to service its continuing liabilities on interest and debt instalment payments.”
This being the case, the company has hired a financial advisor to assess its capital situation.
“We do not see any improvement in the market segments where the company is exposed in the short term,” said Eidesvik in an announcement about its third quarter 2016 results. “The board expects 2017 to be a difficult year in all segments. The platform supply vessel (PSV) segment is still characterised by excess supply and companies accepting contracts at day rates below operational expenses. We think a significant number of vessels must be retired from the PSV market on a permanent basis in order to see an improvement in the market.”
Eidesvik said activity in the marine seismic market is still at a low level, with many vessels being laid up. “The improvement of this segment is conditional on when the oil companies restart exploration in order to replace their diminishing reserves,” it said.
The company said the subsea market “is still the segment where we have most confidence” but it expects that segment to remain challenging in the short to medium term.