Bli medlem
Bli medlem

Du är här


Deep Sea Supply: Financial report and Presentation 4Q 2015

In 4Q 2015, Deep Sea Supply ("DESS" or "Company") reports consolidated
revenues of MUSD 22.9 and EBITDA of MUSD 10.5 (46%). Following ordinary
depreciation of MUSD 13.0, extraordinary impairments of book value of vessels
of MUSD 117.2, financial expenses of MUSD 5.5 and negative currency items of
MUSD 0.7, the pre-tax profit was negative MUSD 126.3.

For the twelve months period ended 31 December 2015, the Company reports
consolidated revenues of MUSD 132.4, EBITDA of MUSD 69.2 (52%) and pre-tax
result of negative MUSD 119.8.

Comparing 4Q 2015 financial figures with 3Q 2015, revenues decreased by MUSD
10.7. The main reason for this was lower utilization due to vessels coming
off long term charters not being replaced by new contracts. The vessels'
operating expenses decreased with MUSD 1.9 from 3Q 2015 to 4Q 2015, mainly
due to vessels in lay-up and underlying cost reductions.

Cash and cash equivalents were MUSD 87.1 by the end of 4Q 2015, which is an
increase of MUSD 25.2 compared to MUSD 61.8 by the end of 4Q 2014. Net
interest bearing debt was MUSD 407.2 by the end of 4Q 2015, which is a
decrease of MUSD 52.8 from end of 4Q 2014 due to increased cash position and
repayment of borrowings.

When testing the book value of all assets for possible impairments, the
Company has considered both market valuations received from independent ship
brokers and an internal cash flow valuation on a per vessel basis. Such cash
flow valuation reflects the current low contract coverage, significant number
of vessels in lay-up and a very difficult market outlook.

The result of these tests shows an impairment of book values of USD 123.7 mill
for the total fleet on a consolidated basis. Of this, USD 6.5 mill is
deducted from deferred gain in the balance sheet, resulting in a P&L effect
of the extraordinary impairment of USD 117.2 mill.

Following the impairment, book value of the fleet was MUSD 714.5 by the end of
4Q 2015 compared to MUSD 880.3 end of 4Q 2014. Total shareholder's book
equity is MUSD 322.5, and the Company's value adjusted equity is 37.2%. Total
number of outstanding shares in the Company was 261,197,194 at the end of the

The Company's bank loan facilities, except the senior loan facility, are
maturing in 2019 or later. The senior loan has maturity date end of October
2016 and a balloon payment of USD 117 mill. The dialogue with the banks to
refinance this balloon payment is in progress and will continue in the next

The Company has sold the two AHTS vessels "Sea Lynx" and "Sea Bear". The
vessels will be delivered to new Owners within February 2016. "Sea Lynx" was
100% owned by the Company, while "Sea Bear" was owned by Ship Finance
International Ltd ("SFI") and leased to the Company under a 12 year sale and
leaseback agreement entered into in 2008. Following the sale of "Sea Lynx"
and the termination of the sale and leaseback agreement with SFI for "Sea
Bear", the Company's loans are reduced by USD 21.9 mill and the cash reduced
by USD 6.6 mill. The sale and termination will give a book loss of USD 17.0
mill which will be included in the 1Q 2016 financials.

During the fourth quarter of 2015, the company saw a continued weakening of
the global OSV markets. In Brazil, the situation remains difficult with
reduced activity and foreign flagged vessels being blocked by vessels with
local flag. The North Sea spot market is challenging with unsustainable rate
levels and low utilization. No improvement in the market situation for OSVs
is expected in the short to medium term. Following the sale of two AHTS
vessels, the Company has no vessels in the North Sea spot market. The
contract coverage for 2016 for the Company is not satisfactory. DESS is
currently pursuing some term opportunities, however the competition is fierce
and rate levels are low.

As a consequence of the weak market, Deep Sea Supply will continue to lay up
vessels that do not have any fixed activity the next months. In addition to
laying up vessels to reduce cost, the Company is working hard to further
reduce operating expenses for the vessels in operation.

The 50% owned joint venture with BTG ("DESS BTG") which owns 21 vessels, is in
a challenging financial position with a significantly reduced contract
backlog following the expiry of many term charters without new contracts
being entered into. The cash position was USD 25.7 mill end of 2015, and the
Company is dependent on certain adjustments of its financial obligations
going forward. The financing of DESS BTG is non-recourse to Deep Sea Supply

On a consolidated basis, the Board is pleased that the Company has been able
to further strengthen its balance sheet and build its cash position through

Limassol, 19 February 2016
Deep Sea Supply Plc

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

DESSC_4Q 2015 Presentation
DESSC_4Q 2015 Financial Report


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Deep Sea Supply via Globenewswire


Författare WKR

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.