Farstad continues selling its vessels at a loss

Farstad continues selling its vessels at a loss

Farstad Supply has sold its anchor handling tug support (AHTS) vessel Far Sea, which is the sixth vessel to be sold by the Farstad Shipping group in the past 10 months.

The sale price was not disclosed, but the Oslo-listed group said the vessel was sold at a NOK32m ($3.7m) book loss, of which NOK30m ($3.5m) has been booked as impairment in its 4Q 2015 financial results. The vessel was delivered to its buyer on Thursday.

Farstad Shipping says it will undertake NOK1,279m ($148m) in impairment losses during its fiscal year 2015, of which NOK1,094m ($127m) will be booked in its 4Q 2015 financial results.

The Oslo-listed company said the book losses relate to vessels and other fixed assets and are “based on the development in brokers’ market values of the fleet, the prevailing market prospects as well as the uncertainty related to the vessels’ future earnings”.

 

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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