Oceanteam ASA reports full year 2020 results
The year 2020 has proven to be challenging for Oceanteam; primarily the shipping segment. Since the outbreak of the pandemic, the shipping segment has been confronted with cancellation of offshore projects, increased expenditures in crewing (quarantine with crew changes, testing ect) and class related capex. The difficult market circumstances in combination with persistent liabilities have accelerated management’s initiative to reposition the company and revitalise Oceanteam for future development in the energy transition and renewable market.
Partly as a result of market conditions and the subsequent sale (in Q2 2021) of the CSV Southern Ocean (see press release 29 March 2021), management impaired the group's vessels and equipment. The impairment charge of USD 46.1 million on the CSV Southern Ocean was recognized in 2020. The joint venture Oceanteam Bourbon 101 has been fully impaired due to a negative equity position.
The Solutions division utilised the existing assets, carousels and tensioners, better than forecasted in a highly competitive environment during 2020, winning several long and short term contracts. We expect this segment to grow in the foreseeable future as renewable energy is gaining momentum and is becoming a significant portion of the energy mix.
Together this led to the following 2020 results:
EBITDA 2020 is USD (12.9) million negative compared to USD 7.8 million in 2019, impacted by a write off of USD 17.0 million on the joint venture Oceanteam Bourbon 101 AS;
Net result before taxes is a loss of USD (72.4) million compared to break-even in 2019;
Net loss for 2020 is USD (73.2) million compared to a profit of USD 0.7 million in 2019.
The impairment of the CSV Southern Ocean as well as the write off for the Oceanteam Bourbon 101 AS joint venture had a major impact on the 2020 financials.Following the sale of Southern Ocean, the priority is to focus on increasing Oceanteam’s exposure to the renewable offshore energy market through M&A and organic growth.
Going forward, Oceanteam will explore all potential growth opportunities, utilizing its track record and competence of its workforce, the OSE listing, and the potential to attract financing on the capital market to build a renewable investment platform with suitable partners and interested partners. The first step has been taken by announcing a potential merger between Oceanteam and Passer Group AS.
Keesjan Cordia, Chairman of the Board of Oceanteam ASA, says: “2020 was a year of transition within an extreme difficult landscape due to market conditions, COVID19 and persistent liabilities. We have “cleaned up” our balance sheet by impairing (and now selling) our largest assets with the objective i) to deleverage our company and ii) decrease our carbon footprint in a growing decarbonized world.
The impairment (and subsequent sale) maybe perceived as a significant (book)loss, on the contrary it does provide positive cashflow and will relieve Oceanteam from the short term persistent liabilities that are delaying our steps moving forward.
In transitioning away from our legacy, the anticipated Passer transaction is a first step to a sustainable future in a growing market for Oceanteam.
For further information please contact:
Henk van den IJssel CEO Oceanteam ASA
T +31 20 535 75 70
ANNUAL REPORT 2020