After several challenging years, Norway's K Line Offshore has delivered its best result since the collapse of oil prices six years ago.
But like other players in the segment, the Japanese-owned offshore vessel company has been struggling, and its figures are still in the red.
K Line Offshore reported a pre-tax loss of NOK 44m ($4.83m) in the latest fiscal year, down from a NOK 346m loss a year earlier.
The company has suffered from cost cuts by oil companies, which resulted in many platform supply vessels and anchor-handling tug supply ships going directly into lay-up.
But last year markets improved, and K Line Offshore’s operating revenues increased by 32.6% in the fiscal year ending 31 March.
The result for the company, which is wholly owned by Japan’s K Line, was the best since 2014, said company chief executive Petter Nordby.
But due to the Covid-19 pandemic, the uncertainties are more extensive than ever, he said.
Due to having a financially strong shareholder, K Line Offshore has avoided negotiations with bondholders and banks. Nordby said K Line has backed the company the whole time.
“This is rather unique in this business,” Nordby told Norwegian financial daily Finansavisen.
At the end of March, K Line Offshore had a book equity of NOK 915m.
