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    Full speed ahead at Oceanteam

    News // September 14, 2006

    Northocean now has two vessels on order.

    Oceanteam Power & Umbilical says it has achieved "stronger awareness in an improving market" and will pursue its original investment plan to expand the company further, both geographically and in services.

    Revenues in the second quarter 2006 were € 6.2 million and EBITDA came to € -1.2 million.

    Oceanteam has effectively been operating for eight months. The company is now about to deliver its first project, the power cable installation of the first major offshore wind farm in the Netherlands, with expected completion in October 2006.

    Oceanteam has lately increased its engineering and tendering department significantly to meet its building management and tendering volume requirements. The build up comes after a private placement of NKr 240 million completed in the second quarter.

    The private placement enabled the building of North Ocean102, a DP2 construction support vessel capable of carrying 7,000 tonnes deck load, with 13,500kW of power installed and two 100 tonne offshore cranes. Expected delivery is in the first quarter of 2008.

    Oceanteam has two vessels under construction, and their value has increased significantly since they were ordered early 2005.

    In the second quarter, the company has been working with two installation vessels, two trenchers and four support vessels on Shel/Nuon Nearshore Wind Park Project. Expected completion of the project is October 2006. Significant variation orders have been requested, amounting to approximately 40 per cent of contract value. This may increase further.

    Significant additional project costs and start up costs have been experienced. This had a negative impact on the company's EBITDA.

    In addition, Oceanteam P&U ordered flexible product installation equipment for the new vessel North Ocean 101, which includes a 5,000 tonne capacity horizontal reel, two 120 tonne tensioners and two 100 tonne offshore cranes.

    North Ocean 101 is scheduled for delivery in August 2007.

    The ordering of the vessels prior to the current surge in vessel construction activity and prices in 2005, coupled with the favourable delivery times, has created high interest from the market. The company is confident about future prospects for these vessels and equipment.

    During the second quarter, the company has taken delivery of the OceanJet 900 and OceanJet 200 trenching machines, both of which have proven excellent trenching capability on the current contract. 

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