Westshore Shipbrokers is planning to conduct a major share issue in the first quarter of next year in a bid to inject capital in the company, according to the Norwegian financial daily Finansavisen.
The move comes as offshore broking houses are suffering from a poor market that has also been hit shipowners hard in the sector.
Kristiansand-based Westshore, which has total debt of more than NOK 19m ($2.2m), logged a pre-tax loss of NOK 4m last year.
Auditor Revisjon Sor said in the company's annual report there is a substantial uncertainty about Westshore's ability to maintain continued operations.
The company is in continued dialogue with its creditors to secure that their interests “are being handled in a satisfactory way”, according to the report.
The situation in 2020 has apparently not helped significantly compared to the prior year.
“In 2020, the market has been dominated by the ongoing pandemic, which has led to a lower oil price and lower investment activity from the leading oil companies,” Westshore said.
The company has submitted its annual result after the July deadline under Norwegian law.
