Eidesvik Offshore’s bottom line took a hit in the third quarter as the company continued to unwind write-downs as the market improved.
The Oslo-listed offshore vessel owner reported a NOK 51m ($4.8m) profit for the three months ending on 30 September, much lower than the NOK 163m recorded in the same period last year.
But the 2022 result was boosted by a NOK 209m impairment charge, which the company reversed this quarter.
“The third quarter was yet another strong quarter for Eidesvik Offshore,” said chief executive Gitte Gard Talmo. “The macro-outlook in all our operating segments remains strong and these favourable market conditions will generate new opportunities for the company.”
Revenue was NOK 205m, up from NOK 190m for the same period last year, as fleet utilisation jumped to 98% from 97% and its supply vessels — eight of its 13 ships — hit 100%.
Other line items remained largely in line year over year, save for the reversed impairment charge.
The company said high prices and tight supply in the oil market are boosting rig demand, and with it platform supply vessel demand. The supply of those vessels on the Norwegian continental shelf nearly sold out for most of the third quarter and there were similar rates of utilisation in other regions.
It noted that while the offshore wind market has experienced project delays and cancellations, subsea companies are reporting increasing backlogs, creating opportunities for vessel owners.
Eidesvik took a NOK 332m impairment charge in the second quarter, due to improving rates and sale agreements for two seismic vessels at higher-than-expected rates.
Talmo said the company is always looking into expanding the business and has the capacity to do so.
“However, we are adamant that new business cases in Eidesvik must rest on two pillars: long-term contracts with clients that fit our strategy; and long recurring cash flows at healthy multiples,” she said.
“Our discipline in selecting the right clients and projects got us through the industry downturn with all our values intact, and it is this exact strategy that enables us to focus on growth prospects today.”