BW Offshore has logged a bigger loss in the third quarter as it continues its major restructuring effort with a reverse share split.
The FPSO specialist saw red ink of $11.2m from July to September, compared to $4.4m in the corresponding quarter of 2015.
Its operating revenue stood at $159.6m, a decline of 7% while EBITDA was down to $76.9m from $84.6m.
BWO said it still expects a prolonged downturn of contract awards while it sets securing continued use of assets as its top priority.
In response to the current tough market conditions, BWO closed on a huge restructuring in the market by striking deals with banks and bondholders.
It has now revealed a reverse share split which will merge every 50 common shares of $0.01 par value into one share of $0.50.
This move is expected to help the company comply with Oslo Stock Exchange regulations.
The reverse share split was approved by BWO’s directors today and will come into effect on 1 December.
Arbitration against Addax
Meanwhile, the Oslo-listed company has started an arbitration process claiming $52.6m from Addax Petroleum Exploration.
BWO said it has not been paid the full rate for the FPSO Sendje Berge for some time and added it considers Addax’s arguments unjustified.
“BW Offshore is currently awaiting the outcome of a forthcoming hearing by the arbitration tribunal,” it said.
