Sweden's Viking Supply Ships (VSS) will soon be debt-free following vessel sales, but expects a tough OSV market this year.
The Christen Sveaas-owned company, which despite its name now has no supply ships, said the net loss including discontinued operations for the fourth quarter was SEK 123m ($13.33m), down from SEK 132m in 2017.
It was boosted by an SEK 18m cash contribution from selling its last three small bulkers, with profit of SEK 4m from the deal.
It also sold its last two platform supply vessels (PSVs).
In August, Viking had offloaded three of its ice-breaking anchor-handlers - the 18,268-bhp Tor Viking and Balder Viking (both built 2000), and the Vidar Viking (built 2001) - to the Canadian government.
This brought a net gain of SEK 2.495bn.
"As a result of the divestment of the ice-breakers, the financial situation of the group has significantly improved," it said.
"The group will, in accordance with the restructuring agreement with its creditors, repay all of its bank debts which will result in the group becoming debt-free."
Revenue dipped to SEK 52m from SEK 67m due to the weak activity in the North Sea market.
The average fixture rate in the fourth quarter for the anchor-handler fleet was $17,500, down from $22,100 a year ago, and the average utilisation was 39%, versus 30% in 2017.
Challenging year ahead
CEO Trond Myklebust said that although still volatile, the oil price "seems to have stabilised at a sustainable level, at which the investment level in the offshore oil and gas segment is expected to gradually increase.
"In the longer run this will positively impact the OSV segment, but due to oversupply of vessels and time lag due to budget cycles, the OSV market in general is expected to remain challenging through 2019," he added.
"However, VSS has seen increased tendering activity within the harsh-environment segment, which is expected to increase the demand for ice-classed vessels."
