Oceanteam is pleased to present its 2018 annual financial report. 2018 was a good year for Oceanteam, further described in the attached report.
The financial restructuring of the Group has been successfully completed. Equity ratio improved materially to more than 70%. Both vessels were under charter contract for the full year, except for a short yard visit of the CSV Southern Ocean to obtain SPS 2008 notation. The Solutions division saw its business growing in 2018. Together, this led to the following results over 2018:
EBITDA improved to USD 12.2 million in 2018 versus USD 9.8 million in 2017
Total operating income increased to USD 25.3 million in 2018 versus USD 24.4 million in 2017
Operating profit of USD 6.5 million over 2018 compared to a loss of USD (24.1) million in 2017
Net profit from continuing operations of USD 0.9 million, versus a loss of USD (11.5) million over 2017
Loss for the period was USD ( 0.1) million, versus a loss of USD (12.0) in 2017
Both book value and the fair market value significantly outweigh the secured debt on the joint venture vessels meaning that the Company is not overleveraged. The Company further only has USD 3.1 million shareholder loans for working capital purposes as debt.
With a new shareholder base, the Company completely renewed the management and Board of Directors, all with a proven track record in the offshore business. Mr. Keesjan Cordia is the Chairman of the Board and also a new shareholder in the Company.
Under this new leadership the Company is now transforming itself into an investment platform for Subsea, Solutions, Shipping and other specialised segments in the offshore oil and gas and offshore wind industry.
Leidus Bosman, CEO of Oceanteam ASA says: “2018 was a turbulent and good year for Oceanteam, setting the fundament for a new chapter for the Company. On most financial metrics substantial improvements have been realised: Operating revenue, operating profit, net profit, EBITDA and equity ratio have all showed satisfactory improvements and better results. Also operationally, the metrics were good with high utilisation and outstanding safety statistics. With strong signals that the oil and gas services industry is finally coming out a deep and long recession with oil companies now planning to take more FIDs of their deep water projects in the coming years, and with an excellent outlook for the offshore wind business now rapidly going “global”, the Board and management team is confident about the future prospects for Oceanteam. It hopes to further grow the business in 2019 and maximise shareholder value from the improved outlook.”
The Company is comprised of two operating segments, Oceanteam Shipping and Oceanteam Solutions. Oceanteam Shipping owns, charters and manages deep-water construction support vessels and fast support vessels. Oceanteam Solutions is a service provider to the renewable and oil and gas industry with the supply of rental equipment for the transportation, storage and handling of subsea cables. Oceanteam has been active in the industry as an offshore solutions provider for over twelve years.