Siem Offshore is the latest offshore support vessel operator to report reduced red ink during 2018 as markets begin a recovery.
The Oslo-listed company's net loss attributable to shareholders was $48.9m for the full year, compared to a loss of $71.2m in 2017.
This is equates to a net loss of $0.05 per share in 2018, compared to $0.08 in the previous year.
The net result was boosted by an increase in revenues seen since the fourth quarter 2017, which Siem said was due to higher earnings from and utilisation of its PSV and OSCV fleets.
This progress was held back, however, by aggregate impairments of $55.9m, following Siem’s review of its vessel valuations, intangibles and long-term receivables.
The company said it saw a slight increase in activity worldwide during the fourth quarter 2018, but not enough to increase rates, which were held back by vessel overcapacity.
Looking to the near future, Siem was optimistic that improving oil prices would kick-start exploration and production spending, which would boost drilling and activity in the offshore market.
“However, the significant excess capacity in the offshore service-vessel fleet has increased the competition amongst owners for any vessel requirements, thus depressing charter rates and vessel utilizations,” said Siem.
“The imbalance of supply and demand for offshore vessels is expected to remain for several years and will continue to put pressure on the charter rates and our cashflow.”
