Eidesvik Offshore says the offshore vessel markets have seen an upturn so far this year and has cut its net loss for the first quarter.
The offshore supply vessel owner recorded a loss after tax of NOK 49.7m ($5.7m) for the first three months of 2019, compared to a NOK 51.1m loss during the same period last year.
"In the first quarter of 2019, the market for PSVs [platform supply vessels] in the North Sea experienced a welcome increase in both rate and utilization levels," Eidesvik said in its financial report.
"This was the case in both the spot and term market, and we see signs of improvements for parts of the PSV market."
Eidesvik said its results and cash flow for the quarter are "substantially better" than the financial projections on which it based an agreement with its lenders a year ago.
Results by segment
Cash flow from Eidesvik's operating activities was safely in the black during the quarter and amounted to NOK 11.7m, up from a loss of NOK 35.9m posted 12 months ago.
Eidesvik's seismic segment posted the strongest year-on-year growth, although its subsea and supply divisions also saw a boost to their results.
The seismic segment saw operating profit increase year-on-year by NOK 38.3m to total NOK 65m during the first three months of 2019.
The result includes contributions from Global Seismic Shipping, the 50:50 joint venture between Eidesvik and CGG.
The shipowner said this was due to its vessels Veritas Viking and Geo Caribbean leaving layup and stronger rates for Vantage.
Outlook
Eidesvik said in its report it remains "cautiously optimistic" for the market for large PSVs.
"Also, the subsea segment shows signs of market improvement with the major subsea contractors reporting solid backlog building and positive market outlooks," the shipowner noted.
Rates are already increasing with activity levels for the subsea sector, according to Eidesvik.
"We remain positive to this segment in both medium and long term," the company said.
Eidesvik has five vessels still in layup, including vessels that belong to joint ventures, as of the report's publication on Wednesday.
Its contract coverage stands at around 77% for the second quarter and around 75% for the rest of 2019.
Contract award
Eidesvik also revealed that its PSV Viking Prince (built 2012) last month commenced a charter to CNOOC for three to five months. The rate was not revealed.
AIS shows the vessel has been active in UK waters of the North Sea over the past four weeks.
