OCEANTEAM SHIPPING ASA Announces Release of Q1 2015 Report and Presentation
The company is reaping the benefits of its diversification strategy, a strategy that has allowed the Company to sustain and improve its performance, even during challenging market conditions.
Since 2012 Oceanteam has developed several new business areas, as part of Oceanteam Solution, in addition to its shipping activities. Presently about 50 percent of Oceanteam’s revenues come from solution driven services. Our strategy is to sustain this revenue split.
The recent volatility in key markets has demonstrated that Oceanteam has in place a scalable and flexible business model, which can build up fast, and has a strong management team which delivers and is able to handle different types of weather. This is also the first quarter we report without the earnings from our recently sold 50 percent stake in CSV North Ocean 102 to J. Ray McDermott.
The sale of the 102 deleverages the Company significantly and underpins the other central pillar of our strategy, strict capital discipline.
In April an USD 35 million installment was paid on the Company’s bond loan. The transaction is part of the Company’s long-term strategy to optimize and to strengthen its balance sheet. Strict capital and cost discipline combined with reduced leverage will allow the company to replace high cost capital with more flexible capital structures on call that will facilitate the company to grow its earnings going forward with a significantly reduced cost of capital.
At the beginning of this year Oceanteam Solutions closed a EUR 15 million revolving term loan provided by NIBC Bank N.V. Proceeds under the facility will be used for investments in the Company’s equipment pool and services and can be drawn against new back log. Improved funding conditions, as demonstrated by the two new loan facilities entered into 2015, reconfirms our focus on integrated services, growing markets beyond the volatile oil & gas, such as offshore renewables, plus certain carefully selected high potential regions like Mexico. We believe this will accelerate growth and value creation in the coming years.
Oceanteam will retain its capital and cost discipline through a strong commitment to paying dividends, latest payable in 2018.
HIGHLIGHTS FOR THE QUARTER
• Revenue from operations USD 14.3 million
• EBITDA from operations is positive USD 6.9 million
• Operating profit of USD 4.2 million
• Net finance negative USD 3.6 million
• Net result for the quarter before revaluation changes is positive USD 0.6 million
• The construction of DOT Shipping’s large offshore support vessel is progressing as planned and the two new build FSV’s are in full operation in Mexico. The two FSV’s are fully financed and have commenced 7 year time charters
• RentOcean awarded contract to supply cable laying equipment, crew and cable transpooling job in The Netherlands
• RentOcean succesfully completed LS Cable power cable projects and started demobilization of 2x 4000T demountable turntables
• RentOcean opened support base in Dubai and Eemshaven to support its key projects
• DOT Shipping has opened new offices in Ciudad del Carmen, Mexico
• KCI has been awarded a second phase of a large engineering project in the Middle East
• KCI has been awarded various larger and smaller contracts in the oil & gas and offshore renewables markets under challenging and tough market conditions. KCI opens a new high-end and more efficient design engineering facility in Schiedam, The Netherlands
• Oceanteam Shipping’s CSV and FSV fleet were fully operational and committed to long-term charters