Farstad steady, keeping a weather eye on oil spending changes
Farstad has announced a NOK79.5m ($13.4m) profit for the first quarter, down from NOK82.1m in 2013.
May 14, 2014
Farstad's Subsea arm recorded a NOK13m operating loss, reversing a NOK815,000 operating profit in Q1 2013, while PSV operating profit more than doubled to NOK54.7m
The company's operating result was up from NOK173.3m to NOK192.7m, but financial expenses rose steeply from NOK114m to NOK145m and depreciation rose 11% to NOK192.7m.
In its appraisal of the market, Farstad acknowledged the oil industry's focus on reducing costs and will be closely monitoring developments, but has so far seen no impact on its offshore activities. The company expects increased activities in the years to come, not least of all in inspection maintenance and repair.
Brazil is a strengthening market in Farstad's eyes, while the Indian Pacific remains oversupplied with vessels. The North Sea market is expected to improve during the summer months but tonnage needs to leave for other markets for any longer term positive development, an event that depends on strength on both African coasts as well as North and South America
Looking to deliveries and the supply side, the PSV orderbook is noted as being of particular concern, with better balance in store for the AHTS market.
Including optional extensions, Farstad currently has 68% of remaining days in 2014 covered, and 48% in 2015.
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