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Viking Supply Ships AB (publ) Interim report Q3 2017

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Press release

18 December 2017

Third quarter

  • Total revenue from continuing operations was MSEK 93 (235)
  • EBITDA from continuing operations was MSEK -18 (85)
  • Result after tax including discontinued operations was MSEK -99 (-93)
  • Result after tax per share including discontinued operations was SEK -0.3 (-0.5)

Year to date

  • Total revenue from continuing operations was MSEK 264 (685)
  • EBITDA from continuing operations was MSEK -124 (212)
  • Result after tax including discontinued operations was MSEK -200 (-261)
  • Result after tax per share including discontinued operations was SEK -0.5 (-1.5)

Summary of events in Q3

  • EBITDA for Q3 from continuing operations was MSEK -18 (85).
  • The average fixture rate in Q3 was USD 37,500 (53,300) for the AHTS fleet and USD 0 (0) for the PSV fleet. The average utilization in Q3 was 36% (65) for the AHTS fleet and 0% (0) for the PSV fleet.
  • Early in July 2017 Balder Viking and Vidar Viking were re-flagged to NOR.
  • The continued challenging market conditions, including downward pressure on rates and utilization, have impacted the Group’s liquidity during the first nine months of 2017. As a consequence, Viking Supply Ships A/S shortly after the end of Q2 2017 initiated a dialogue with its lenders to secure a long-term stable financing solution.
  • During Q3 an impairment charge of MSEK 32 was recognized related to the PSV fleet.

Subsequent events

  • In December 2017, Viking Supply Ships A/S obtained support for a restructuring proposal from all senior lenders. Subject to final approval from the senior lenders’ credit committees, the Group therefore expects the financial restructuring to be finalized within short, subject to an equity issue at an agreed level in Viking Supply Ships AB and a subsequent equity injection by the parent company into Viking Supply Ships A/S.
  • An extraordinary general meeting was held on 6 November 2017. The extraordinary general meeting resolved in accordance with the Board of Directors’ proposal on a rights issue of shares, the Board of Directors’ proposal on a directed share issue to Viking Invest AS (a wholly-owned subsidiary to Kistefos AS) with payment against set-off for an underwriting fee and the Board of Directors’ proposal on a directed share issue to Kistefos with payment against set-off for a consulting fee and therewith related proposals. The rights issue is fully underwritten and is estimated to be completed in the beginning of January 2018.
  • Shortly after the end of the third quarter, Viking Supply Ships decided to reduce the capacity of its spot fleet by placing Loke Viking in stand-by mode in Uddevalla, Sweden. Part of the crew has been reassigned to other vessels in the fleet, while some crew has been terminated. Viking Supply Ships considers this to be an unfortunate, but necessary, step to preserve cash and influence the market balance in the region. 

Press and analyst conference

In conjunction with the publication of this interim report, an earnings call will take place on Monday 18 December, 2017 at 10.00 am.

Phone: +46 (0) 8 50520424

Password: Viking Q3

Please dial in 5-10 minutes before the call starts.

For further information, please contact:  

Ulrik Hegelund, CFO, ph. +45 41 77 83 97, e-mail ulrik.hegelund@vikingsupply.com 

Morten G. Aggvin, IR & Treasury Director, ph. +47 41 04 71 25, e-mail ir@vikingsupply.com 

Viking Supply Ships AB is the parent company of a Swedish shipping group with its main office in Gothenburg, Sweden. The Group conducts its business in four segments: Anchor Handling Tug Supply ships (AHTS), Platform Supply Vessels (PSV), Services and Ship Management. The business is focused within offshore and ice-breaking primarily in Arctic and subarctic areas. The Group has approximately 400 employees and its revenue for 2016 amounted to MSEK 760. The Company’s series B share is listed at Nasdaq Stockholm, Small Cap segment. For further information, please visit: www.vikingsupply.com.

This information is information that Viking Supply Ships AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:30 CET on 18 December 2017.

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