Deep Sea Supply has 20 vessels laid upCompany News // November 21, 2016
Norway's Deep Sea Supply has it has 20 vessels laid up and is continuing to work hard to reduce costs.
Announcing its third quarter results, which included consolidated revenues of US$10.2 million and EBITDA of US$7.3 million and a pre-tax loss of US$8.0 million, the company said the main reason for lower revenues compared with the same period in the second quarter was lower utilization and lower rates.
"Vessel operating expenses increased by US$0.7 million from the second to the third quarter due to more vessel days being included in the financials following the roll-up of DESS BTG and one-off dismissal costs for Brazilian seafarers following the completion of four contracts in Brazil," the company said.
"During the third quarter of 2016 the oil price has remained low and there are still few signs of improvement of the fundamentals of the global OSV markets," said Deep Sea Supply. "The company therefore expects no improvement of the difficult market situation for OSVs in the short to medium term."
The company said the board is actively considering alternative uses of its fleet, including in the aquaculture and other sectors.
Deep Sea Supply said it has sufficient liquidity for 2017 bu the board is considering various strategic alternatives, including consolidation.