Viking Supply Ships has finalised its restructuring after reaching an agreement with Kistefos at the same time as reporting a smaller loss in the third quarter.
Following months of negotiations and after securing bondholders’ support in September, the offshore vessel owner said it has agreed on amending the terms of a bareboat charter with Kistefos-controlled Odin Viking SPV.
Viking added this development finalised its restructuring, which is still subject to an equity issue and a subsequent equity injection by parent company Viking Supply Ships AB.
The company said its plan will provide a stable financial platform until 2020, given that utilisation rates are satisfactory.
Smaller loss in the third quarter
Viking trimmed its red ink for the third quarter from SEK 282m ($31.2m) to SEK 93m.
In a relatively strong North Sea spot market in July which softened later, the company reported revenue of SEK 235m against SEK 232m a year ago.
Viking explained the negative third quarter result was mainly due to an impairment of its platform supply vessel (PSV) fleet as well as unrealised currency effects.
It added there were positive indications that activity levels in the Barents Sea and Canada would increase and this could give Viking a boost.
But the company’s red bottom line along with its financial problems did not go unnoticed from the public accountant.
He wrote in his report: “Without having any effect on our conclusion above, we would like to draw attention to the fact that as stated in the interim report, the company reported a loss for the period.
“In summary this means that before all agreements in connection with the financial restructuring have been signed and the share issue has been completed, there is an uncertainty regarding the company’s financing.”
