The year 2019 has proven to be challenging for both Oceanteam’s Shipping and Solutions segment but both segments have performed according to budgetary expectations.
Significant reduced operational and financial cost combined with the sale of non-contributing activities led to a return of profitability for 2019. The equity ratio improved further to 74% (2018: 70%).
In the Shipping division, both vessels were under contract during 2019, with an average utilisation of 90%.
The Solutions division faced lower activity levels throughout the offshore wind industry caused by cyclical permitting of new offshore wind farms by the respective governments. Wind offshore projects are postponed to the coming years. Together this led to the following 2019 results:
- EBITDA 2019 USD 7.8 million compared to USD 12.2 million in 2018 with a declining margin of 43% compared to 48% in 2018;
- Net result before taxes decreased from USD 0.9 million in 2018 to break-even in 2019;
- Net profit for the year is USD 0.7 million compared to a loss in 2018 of USD 0.1 million.
The book value and fair market value outweigh the secured debt on the joint venture vessels. Apart from the joint venture debt, the Company further has USD 3.2 million shareholders’ loan for working capital purposes.
Success in 2020 will be driven by successful execution of the planned class-related maintenance programmes for both vessels and winning new charters straight thereafter. For both vessels we are in detailed negotiations with existing and new clients to win new charters both in the oil & gas space as well in offshore wind, and both long-term and short-term contracts. 2020 has started well for our Solutions business and we expect this trend to continue for the remainder of the year. Given the tough market circumstances as a result of the outbreak of the coronavirus and the low oil prices, maintaining liquidity will have our highest priority.
Keesjan Cordia, Chairman of the Board of Oceanteam ASA, says: “2019 was a year of consolidation after a turbulent 2018. Our biggest achievements were winning new projects resulting in high utilization of both our vessels against fair charter rates. In 2020, this will be again our biggest challenge. With respect to our Solutions business, main opportunities will occur in the renewable industry with numerous projects starting. Oceanteam Solutions is well equipped and positioned and has the advantage of having vessels in Oceanteam Shipping that can perform services in both oil & gas as well as offshore wind industry.”
ANNUAL REPORT 2019