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Viking Supply Ships A/S Interim Report Q2 2016

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Press release

  • In May 2016, VSS A/S agreed the main principles for a restructuring agreement with the bank lenders. The term sheet with these main principles was signed on 12 July 2016. In August 2016, VSS A/S reached an agreement with the bondholders’ committee, representing a majority of the outstanding bonds, regarding a revised proposal for restructuring of the bond issue, and a bondholders’ meeting will be summoned within short. The senior lenders are all positive to the agreement with the bondholders. Subject to approval of the proposal at the bondholders meeting, and subject to final approval from the banks’ respective credit committees, this finalizes the total financial restructuring of VSS A/S. 
  • As an effect of the deteriorated market conditions within the oil & gas industry and as a measure to further strengthen the focus on cost efficiency within VSS A/S, the Management decided to close down the office in St. John’s, Newfoundland with effect as of 28 April 2016. VSS A/S still considers Newfoundland and Eastern-Canada to be of strategic importance going forward and in the future, commercial activities towards the region will be followed up closely by dedicated personnel from the headquarter in Copenhagen and the chartering office in Kristiansand.
  • On 9 June 2016, VSS A/S was informed that Norseman Offshore AS had filed an application for bankruptcy against VSS A/S with the Maritime and Commercial High Court in Copenhagen. However, on the 16 June 2016 the petition for bankruptcy against VSS A/S was withdrawn.
  • Due to the challenging market conditions, VSS A/S has recognized an impairment loss during Q2 2016 of MUSD 17.1 related to the PSV fleet.
  • After a short temporary leave Christian W. Berg is back in his position as CEO of Viking Supply Ships A/S.
  • Total revenue for Q2 was MUSD 26.6 (37.4), of which vessel operations contribute with MUSD 22.3 (33.7) and Services and Ship Management segments contribute with MUSD 4.3 (3.7). The EBITDA for Q2 was MUSD 7.6 (11.7).
  • The operating result (EBIT) for Q2 was MUSD -14.8 (5.8). The net result for Q2 was MUSD -13.9 (6.1). The result for Q2 was positively impacted by an unrealized currency gain of MUSD 4.4 (3.4).
  • The average fixture rate in Q2 was USD 51,400 (58,500) for the AHTS fleet and USD 0 (4,100) for the PSV fleet. The average utilization in Q2 was 68% (75%) for the AHTS fleet and 0% (22%) for the PSV fleet. These figures exclude the laid-up vessels.

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