Vroon Group says it is 'on course' despite challenging offshore marketCompany News // June 15, 2017
Vroon Group has responded to media reports about its financial situation.
"Vroon has a substantial presence in the offshore support vessel market, through its subsidiary Vroon Offshore Services. This business has been heavily impacted by a reduction in demand, resulting from the severe downturn in the oil and gas market," the company said.
"Vroon’s other businesses are all performing in line with expectations. Since late 2016, Vroon has been in discussion with its banking and finance partners to address the financial consequences of this situation. These discussions have progressed in a constructive atmosphere and the board expects to reach agreements in the course of the summer.
"Despite the challenging market conditions during 2016, Vroon produced a positive cashflow, although did make various impairment charges on the book value of vessels that led to negative net results, for the first time in the company’s history.
"Vroon’s balance sheet remains sound. The board has taken, and will continue to take, measures to support the company’s financial condition. Vroon expects this, in combination with ongoing revenue enhancement actions and cost-saving programmes, to see the company through the current market downturn.
"Although the overall financial performance of Vroon is currently below historic averages, it is developing in line with the business plan set by the board at the start of this year."