Exacerbating what is usually a quiet time for the North Sea offshore market, the low oil price dragged revenues down to $8.9m in Q1 2015 from $12.7m in the same period 2014.
NAO has benefited from the strong dollar, as its newbuilding orders were made made in Norwegian Krone. Currency gains of $8m have been made on each of the two 2015 newbuildings, and similar savings are expected on the two due to join the fleet in 2016.
The two PSV newbuilds due in January 2016 were delayed in April 2015 from their initial delivery date of mid-2015.
"The fall of oil prices since 3Q2014 is, not surprisingly, affecting service providers to the oil industry," the company stated in its earnings release. "In the case of PSVs, demand from new projects has been reduced, while demand from existing production facilities has not been affected as much."
The company ended the period with $5.8m of cash and cash equivalents, with $115m of a $150m credit facility left undrawn.
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