Costs related to Solstad Offshore’s refinancing effort hit its bottom line in the fourth quarter, the last before its new structure kicks in.

The Norwegian company reported a loss of NOK 46.2m ($4.4m) for the final three months of 2023, as administrative expenses more than doubled to NOK 169m and it took NOK 499m in impairment charges.

It said the growth in administrative expenses was due to one-off increases stemming from payments to advisers to vet the deal from Kjell Inge Rokke-backed Aker Capital, and that it had to write down vessels held for sale.

“To summarise the quarter … Solstad is now fully refinanced,” said chief executive Lars Peder Solstad.

“We have a strong balance sheet and we have an industry-leading fleet. The company has had solid earnings in the fourth quarter, with high utilisation of the fleet.

“We expect that the demand for our services will continue to be strong in a tight market that is backed by solid fundamentals.”

The loss follows an NOK 800m profit for the last three months of 2022.

Revenue rose year over year from NOK 1.2bn for the fourth quarter of 2022 to NOK 2bn.

On a full-year basis, Solstad Offshore recorded a NOK 102m profit, versus a NOK 1.34bn loss in 2022 as revenue grew to nearly NOK 7bn from NOK 4.8bn.

It boasts a contract backlog of NOK 7.5bn, up from NOK 6.4bn at the end of 2022, and Solstad said the company has the capacity to take on additional work.

The company will begin reporting as Solstad Maritime in the first quarter of this year.

It took a new name and structure following an injection of NOK 4bn in equity from Aker, which took a 57% stake in the new company. Solstad Offshore will retain 27%.

Solstad Offshore also received a NOK 9.7bn loan from DNB and Export Finance Norway.

The deal was announced in October and the first phase of the agreement was executed in January.

It was subject to a broadside from Christen Sveaas’ Kistefos, which the investment firm eventually dropped.

Solstad Offshore said it received no alternative financing arrangements and that this deal keeps intact value for shareholders.