Cypriot floatel owner Prosafe has posted a profit thanks to financial gains from its restructuring.
Net earnings in the third quarter increased to $201.9m, from a loss of $53.2m in 2015.
Revenue dropped to $129.8m from $154.1m, as utilisation fell to 52% from 81%, however.
This was partly offset by a higher average day rate.
Operating expenses rose to $61.5m from $56.5m, but it booked a financial gain of $168.2m because of forgiveness of bond debt worth $198m as part of its refinancing.
Looking ahead, it said: “Further cost reductions in the E&P sector are expected to contribute to more projects becoming economically viable.
“Combined with continued focus on enhanced recovery, life extensions and safe and efficient operations, the company expects a gradual market recovery from 2018 onwards.”
Prosafe has scrapped three ships and expects rivals to do the same.
All this, plus the substantial debt reduction and the significantly improved cash flow from the refinancing, led the company to say it is in a strong position when the market recovers.
Prosafe launched a plan earlier this year to boost liquidity by $478m by reducing interest on bank loans, as well as cutting debt by $395m through converting $290m of bonds into equity at 30% of their face value.
It has also sold $165m of new shares.
