Eidesvik Offshore warns of potential financial restructuring

The protracted offshore slump could see another Norwegian OSV owner forced into restructuring.

Eidesvik Offshore managed to improve its quarterly earnings, released today, but has admitted it remains under severe pressure.

“If the current market situation continues, the Eidesvik Offshore Group will have to go through a financial restructuring,” the company said in a release, describing current market conditions as “challenging”.

Eidesvik Offshore, which managed a NOK135.09m ($15.91m) net profit in the first quarter, is a supply, subsea, seismic and cable-laying shipping company. The fleet consists of ten supply ships, both platform supply vessels and anchor handling tug supply vessels, five subsea vessels, five seismic vessels and one cable-laying ship.

“We do not see any material change in the short term. We do, however, see an increasing focus internationally on vessels operated on LNG, and think this market will strengthen going forward, also including supply vessels operated on LNG,” the company noted.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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