Rem Offshore, the listed Norwegian offshore services vessel operator, has reported a fall in both 2Q15 and 1H15 interim profits and warned that the outlook remains challenging in the sector.
Group net profit fell to NOK69.3 million (USD8.4 million) in 2Q15 from NOK105.8 million in the same period last year. Revenues fell to NOK292 million from NOK335 million.
For the first six months of the year, the company reported net profit of NOK70 million, sharply lower from NOK183.4 million a year earlier. Revenues rose slightly to NOK607.8 million from NOK598.6 million.
The company, which operates 19 ships, 12 of which are platform supply vessels (PSVs), said the North Sea spot market was weak in the second quarter, especially in the PSV segment. “AHTS rates were acceptable at times but very variable. PSV rates are well below operating expenses,” Rem said.
Rem Offshore has laid up two PSVs until market conditions improve, thus contributing to a better balance between supply and demand, it added.
“There is still satisfactory activity in the subsea segment, but here too activity levels are in decline. The offshore market in general is expected to remain challenging for some time,” Rem said. Seven of the company’s vessels serve the subsea sector.
The group’s contract coverage for the rest of 2015 stands at around 62%, which rises to 66%, including options.