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DOF announces Q4 results

View all news from: DOF Subsea UK Ltd
View directory entry for: DOF Subsea UK Ltd

25 February 2021

The Group’s revenue for 4th quarter (management reporting) totals NOK 1 680 million (NOK 1 979 million) and the EBITDA totals NOK 606 million (NOK  805 million, adjusted for hedge accounting). The operating profit (EBIT) is NOK -335 million (NOK 98 million), of which depreciation and impairment totals NOK 942 million (NOK 651 million). Net profit is NOK  238 million (NOK -512 million).

In summary, 2020 has been a challenging year due to continued downturn in the markets which has increased the pressure on earnings and utilisation. In addition, the COVID-19 virus has continued to impact operations. The Group has secured new contracts with a total value of approximately NOK 6.1 billion the last 12 months, and in the 4th quarter new contracts with a value of NOK 1.6 billion have been secured.  

The restructuring of the Group’s debt is ongoing and standstill agreements have been agreed until the 30th of April with the majority of the secured lenders and until the 31st of March with the bondholders. BNDES has extended the standstill agreement for the majority of the facilities until the 10th of June. The Group is dependent on continued standstill agreements with its creditors until a long-term financial solution is agreed to maintain as going concern. 

The average utilisation of the Group's owned fleet during the 4th quarter was 68%; 77% for the subsea fleet, 59% for the AHTS fleet and 56% for the PSV fleet. 

General operational comments in Q4:  
•    Improved performance from subsea projects in the Asia-Pacific and the Atlantic regions  
•    Increased activity in Brazil and several vessels mobilising for new contracts 
•    Continued weak North Sea market 
•    The Group’s current backlog is NOK 15.3 billion