Farstad shines despite offshore overcapacity and oil major cutbacks

Revenues for the first half rose from NOK1.90bn to NOK2.0bn, with first half profits up 46% from NOK86.2m to NOK126.2m. The company's second quarter results 2013 were negatively affected by an unrealised currency loss on long term liabilities of NOK68.3m.

The first half saw the delivery of two AHTS vessels into the Farstad fleet, and a further two outisde of the reporting period in July and August. The deliveries and the sales of one ship built in the 1908s leaves Farstad with a fleet of 62 vessels and two ships under construction, both due for delivery in 2015.

During the first half of the year Farstad signed contracts worth NOK1.9bn, with a further NOK1.7bn signed since the end of the period. Fleet coverage for the remainder of 2014 is 79%, with around 59% coverage in 2015.

Looking at the state of the market, Farstad saw negative developments in the global and North Sea markets as oil majors focus on their costs, a busy orderbook offering little reprieve in the near future.

"The North Sea market has in the quarter developed very negatively in relation to what was previously expected. In particular, the rate level for the AHTS fleet has been lower than expected. An improvement in the North Sea market presupposes the departure of tonnage to other markets," the company stated in its earnings release.

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