Atlantic Navigation first half profit plunges

Profit for the first half ended 30 June 2016 was recorded at $225,000, a dive of 97.1% from the gain of $7.73m in the same period of 2015.

Revenue for the six-month period fell by 38.8% year-on-year to $15.74m due mainly to an idled liftboat on completion of a previous charter, as well as lower day charter rate for OSVs.

Singapore-listed Atlantic Navigation pointed out that it has managed to secure long term contracts for 10 OSVs on five-year charter with two-year extension option from a Middle Eastern national oil firm.

The charters will commence progressively with three OSVs started in May 2016 and the remaining seven newbuilds to be deployed in 2017 following delivery.

“The group continues to be cautious with its fleet upgrade and expansion program given the continuing uncertainties in the oil and gas sector caused by the decline in oil price,” Atlantic Navigation commented.

“Other than two self-propelled self-elevating liftboats, one committed under a shipbuilding agreement in FY2014, and the other delivered to the group in January 2016, acquisitions of new operating assets are made on the back of securing firm long term charter(s) from its clients,” it said.

“The group will continue to review specific opportunities within its core market in the Middle East where offshore energy and production levels are being maintained, as well as within the group’s targeted new markets, particularly in Malaysia.”