The financial restructuring of the Group has been successfully completed. Both segments performed according to expectations and in combination with decreased financing costs after financial restructuring led to a return of profitability over the first half of 2019. Equity ratio improved further to 72 percent (H1 2018: 62 percent). Both vessels were under charter contract for the first half year of 2019. The Solutions division saw its business lagging in the first half of this year compared to 2018. Together, this led to the following results over the first half year of 2019:
- H1 EBITDA 2019 was equal to H1 EBITDA 2018 at USD 5.6 million in 2018 whilst the margin improved from 44 percent to 53 percent;
- But Net profit from continuing operations improved considerably from a loss of USD (1.5) million in the first half of 2018 to a profit of USD 1.6 million in the first half of 2019.
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. Apart from the joint venture debt, the Company further only has USD 3.1 million shareholder loans for working capital purposes as debt.
The Company is transforming itself into an offshore services investment platform to upcoming markets especially the offshore wind market. It will enable the Company to extend its customer base and increase its service level.
Keesjan Cordia, Chairman of the Board of Oceanteam ASA, says: “Where 2018 was a turbulent year for Oceanteam, big steps were taken to restructure the Company. 2019 is a year in which the Company tries to improve visibility and predictability of cash flows, whilst not lose sight of spot opportunities in its key markets. In part, financially restructuring the company in 2018 has significantly contributed to the profitable result over the first half of 2019. The improved visibility and predictability of future cash flows should create the fundament to grow the Company as the envisioned investment platform. But much will depend on the markets for oil and gas services and offshore renewables in which (the latter) we see opportunities to reach our goals. The second half of 2019 will remain challenging but we are confident on the longer term.”