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Farstad Shipping makes $127m impairment for assets

Farstad Shipping makes $127m impairment for assets
Norway’s OSV owner Farstad Shipping has decided to undertake impairments totalling NOK1.09bn ($126.4m) of vessels and other fixed assets for its fourth quarter 2015 results.

The latest decision by Farstad Shipping will bring the company’s total impairments of fixed assets for the fiscal year 2015 to NOK1.28bn.

The company said the impairment decision was based on developments in brokers’ market values of the fleet, the prevailing market prospects as well as the uncertainty related to the vessels’ future earnings.

Farstad Shipping currently has a fleet of 59 vessels comprising of 30 AHTS vessels, 23 PSVs, and six subsea vessels, and one subsea vessel is under construction.

The company will publish its fourth quarter 2015 results on 29 February.

The OSV owner had reported a third quarter revenue of NOK969.3m and a loss of NOK435.33m.