London-listed shipowner James Fisher is working to sell its remaining subsea ship as it switches focus to the energy transition.

The Cumbria-based company, better known for its product tankers, revealed a new strategy to move more into renewables earlier this year.

As part of this, it offloaded the 103-loa diving support vessel Subtech Paladin (built 2008) to offshore vessel owner Seamec for $17.3m.

VesselsValue assessed the ship as worth only $9.8m. The company's first-half accounts reveal a profit of £300,000 ($415,000) from the deal.

And Fisher said it has undertaken a full portfolio review to address underperforming assets and businesses.

Swordfish on the way out

The group is now in talks to sell the DSV Swordfish, which has the benefit of a long-term framework agreement for its use with a major contractor, the company added.

The Subtech Paladin was the former Toisa Paladin which was bought at auction in 2018 for $20.3 from Greece's bankrupt Toisa group. The ship was laid up at the time.

In 2019, James Fisher bought the 4,400-dwt subsea support vessel Altus Uber (renamed Subtech Swordfish, built 2007) for $24m. This is now assessed as worth a little over $9m.

The ship was sold by the Siem group in 2012 for a reported $54m to Veolia.

Profit more than doubles

James Fisher operates the 12,900-dwt Cumbrian Fisher (built 2004). Photo: James Fisher

James Fisher's net profit in the six months to 30 June was £13.6m against £5.1m in the same period of 2020.

Revenue dropped to £233.7m from £258.1m a year ago.

There was a tax gain of £5.5m in the period, compared with a charge of £2m in the first half of 2020.

This is due to a credit of £7.9m, which relates to tax deferred because of timing differences created following the impairment of the DSVs in 2020 and the group's current expectations for its diving support operations.

The results were in line with the board's expectations against the backdrop of markets that remain impacted by Covid-19.

The second three months were a marked improvement over the first quarter, the company said.

The shipowner also announced that £130m of revolving credit facilities have been renewed for three years, providing access to £287.5m in total.

"The group is expecting performance to improve during the second half of the year as our end markets recover from the disruption caused by the effects of the global pandemic," said chief executive Eoghan O'Lionaird.

Offshore wind sector 'encouraging'

"The group has seen encouraging levels of tendering in the offshore wind and decommissioning markets in particular, for projects starting later in 2021 and into 2022 and beyond."

The tanker division is now trading broadly in line with 2020 following an improved performance in the second quarter.

Revenue fell to £28.6, against £29.9m in the first half of 2020, while underlying operating profit declined to £2.1m from £3.6m a year earlier.

James Fisher called the first six months "challenging" for its vessels as the UK was placed back into lockdown.

"Following the gradual easing of restrictions in Q2, we saw an improvement in demand."

Volumes are now approaching pre-pandemic levels.