Siem Offshore anticipates another couple of tough yearsCompany News // August 25, 2017
Announcing its second quarter results, Siem Offshore said that, despite the fact that the level of activity in the North Sea spot market has increased due to the reactivation of rigs, day rates remain low because of continued excess supply in the market.
"The demand side has recently improved, however, an oversupply of both AHTS vessels and PSVs remains," said Siem Offshore. "We believe the market will remain challenging for the next couple of years as well-based rig contracts expire and vessels continue to arrive from other regions.
"Many of our competitors that have a weak balance sheet will struggle to maintain safe and predictable service as cash for operations is reduced," it predicted.
Subsidiary Siem Offshore Contractors continues to experience a high level of tendering activity for EPIC-based contracts for medium- and high-voltage submarine power cables to be laid in the offshore windfarm market. Much of this work is due to commence in 2019, 2020 and 2021.
The second quarter saw the company make a loss, in large part as a result of impairment. It reported a net loss of US$87.6 milllion in the quarter ending in June 2017, compared to US$7.9 million in the same period last year.
The impairment recognised in its second quarter results amounted to US$70.8 million.