Bonheur, the investment holding company for Fred Olsen & Co, cut its losses in 2019 by 87% compared to 2018.
The Oslo-listed group, which covers shipping, renewables, cruise and other investments, has recorded a net loss of NOK 343.1m ($37m) for last year, compared to its NOK 2.7bn loss in 2018.
The improvement comes on the back of a stronger financial position and improved revenue, despite impairments booked in the fourth quarter.
The group's revenue rose by 15.5% year on year and was NOK 7.8bn in 2019.
Bonheur made moves to raise cash and spin off its insolvent drilling business last year.
August saw Bonheur issue NOK 800m ($89.2m) in new senior unsecured bonds.
Bonheur deconsolidated Dolphin Drilling — previously known as Fred. Olsen Energy — in January and said it would no longer be a majority shareholder.
Dolphin filed for bankruptcy in June and was rescued by a new buyer, Strategic Value Partners.
Fourth quarter performance
Bonheur booked a net loss of NOK 162m for the fourth quarter 2019, down from profit of NOK 242m in the same period in 2018.
The group's shipping and offshore segment posted negative Ebitda of NOK 73m, compared to NOK 36m in the final three months of 2018.
Bonheur said the impact was due to low utilisation of its transport and installation (T&I) vessels and of its operations and maintenance (O&M) vessels, which together was 46% during the fourth quarter.
Performance also suffered as a result of start-up and project expenses related to new business areas for the vessels.
Impairments
The group's year-end result was also impacted by a total NOK 225m of impairments that were recognised during the fourth quarter.
Of this figure, a NOK 113m impairment was logged within Bonheur's shipping and offshore wind segment, mainly related to the jack-up O&M vessel Jill.
"The impairment is due to increased uncertainty and delays regarding the timeline of US offshore wind projects," the group said in its year-end report.
Bonheur's shipping and offshore wind segment consists of Fred. Olsen Ocean, Global Wind Service, Fred. Olsen Windcarrier and Germany-based United Wind Logistics.
Another NOK 112m impairment was related to write down of the development portfolio within Bonheur's renewable energy segment.
"The impairment is carried out after an examination of the potential negative impact from increased regulatory uncertainty and political and commercial risks," the group said.
Bonheur is also majority owner of TradeWinds' parent, NHST Media Group.
