Oceanteam provides update on financesNews // April 27, 2009
Oceanteam ASA has confirmed that the company has encountered negative results on its contracting business. The company has taken losses and write downs of project values, and cancellation of projects will generate less cash flow compared to the company's projections for 2009.
As a result of the above mentioned, the company has decided to discontinue its contracting business in order to reduce operational and financial risk.
The change of business focus as well as issues related to CSV North Ocean 103 will both incur costs and have an impact on the company's financial situation significantly, mostly due to the following:
- Reduced utilization of some of the company's vessels, barges as well as related equipment and personnel.
- Delayed delivery of North Ocean 103 (currently under construction, and postponed to July 2009).
- Associated unfunded variation orders on North Ocean 103.
General working capital need and restructuring cost.
As a consequence the company is in need of refinancing, which will include raising Euros 30 million in new liquidity.
The company is currently working with First Securities on different refinancing alternatives and exploring avenues.