Siem Offshore’s bottom line flipped back to the black to close out 2023, as all its major segments raked in cash amid a stronger overall market.
Kristian Siem’s Oslo-listed offshore support vessel outfit reported a $100m profit for the three months ending on 31 December, up from an $8.7m loss for the same period in 2022, as revenue shot up more than $20m to $85.2m.
“The fourth quarter was as expected, characterised by reduced activity as we move into the low season for offshore operations,” the company said.
Despite the northern hemisphere winter slowdown, Siem Offshore’s six platform supply vessels earned $11.6m for the quarter, up from $9.4m year on year despite utilisation dropping to 95% from 96%.
Its subsea vessel fleet — made up of four subsea construction vessels, two well intervention vessels and a core drilling vessel — earned $45.7m, up from $40.4m. Utilisation for the quarter was 94%, down from 95% in the fourth quarter of 2022.
The nine anchor-handling tug supply vessels, eight of which the company classifies as large, made $23.7m, up from $10.2m with 71% utilisation for the quarter, down from 75%.
The only vessel class to buck the trend were Siem Offshore’s four fast crew and oil spill recovery vessels, two of which were laid up. They earned $3.7m, down from $3.8m, even as utilisation rose to 100% from 95% year on year.
The company said it expects the market to continue to strengthen, due to demand from both the conventional oil and gas industry and the growing demand for renewable energy.
“For almost all OSV segments, there is an increase in numbers of multi-year contracts hitting the market, which is a strong signal that charterers are positioning themselves strategically to reduce the risk of not having control over capable assets to carry out already booked projects and planned campaigns in the coming years,” it said.
It pointed to three contracts signed since the new year: Charters for the 158-loa Siem Helix 1 and Siem Helix 2 (both built 2016) signed with Helix Energy Solutions for work in Brazil that could run as long as 11 years and one for the 120-loa offshore support ship Siem Spearfish (built 2014) signed with PXGEO.
In early trading in Oslo, Siem Offshore shares dipped by NOK 1 ($0.10) to NOK 28.80.
