DOF Subsea Returns to Profit

DOF Subsea Returns to Profit

View all news from: DOF Subsea UK Ltd
View directory entry for: DOF Subsea UK Ltd

16 November 2016

DOF Subsea returned to profit in the third quarter of 2016,. The company's Board of Directors said it is pleased with the financial numbers for third quarter but noted that in order to continue to adjust its capacity to the challenging market conditions cost cutting measures have continued.

"The organization has been adapted to the underlying activity, vessels have been re-allocated between regions
in order to secure utilization and chartered-in vessels from third parties have been redelivered," said the company in its third quarter report.

The firm contract backlog amounts to approximately NKr 18.5 billion, and including options approximately NKr 35.6 billion as of 30 September 2016. "However, the group is exposed to short-term market conditions for subsea project vessels. On these vessels, management is working to increase the backlog," said company.

DOF Subsea's Board of Directors said they expect challenging market conditions to continue, with an oil price of about US$45 per barrel. The companmy said it expects vessel over-supply to and the weak market to continue. It said that this will increase the risk of further impairment of the groupís assets.

The board said it would 'continuously adjust' the groupís capacity and risk exposure.