Solstad Offshore reduced its deficit in Q1 2022 compared to the same period last year, while earnings and operating income decreased. But the development is better than what the financial report reveals, states the company.
Norwegian carrier Solstad Offshore reports a negative development on several key posts in its financial figures for 2022’s first quarter. But that is especially due to one factor, according to the top management, which looks mildly at the rest of the year.
This is evident from the company’s quarterly report, which shows that operating income (EBITDA) fell from NOK 432m (USD 45m) in Q1 2021 to NOK 208m in Q1 this year.
At the same time, income declined from NOK 1.3bn in 2021 to NOK 1.2bn in Q1 this year.
But these figures have to be viewed in the light of the one-off termination fee of NOK 378m the carrier booked in the first quarter last year due to a canceled contract with Portuguese Saipem. The development in 2022 is thus better than it looks.
”The underlying result for the first quarter improved versus the same quarter last year, when keeping in mind that last year’s first quarter result included a considerable one-off termination fee related to the Normand Maximus contract with Saipem,” reads the report.
However, costs for both fleet and administration were increasing in Q1, and the total costs soared by 15% compared to Q1 2021 to just above NOK 1bn.
The total result was still red but improved to minus NOK 232m after taxes against a deficit of NOK 310m in 2021’s first quarter.
As previously described by WPO, Solstad completed its divestment of non-strategic ships during the quarter, and the financial report states that the company now has 80 active ships, while 9 either need to be activated or sold off.
Furthermore, Solstad reports a growing order book and contracts of NOK 2.6bn in Q1. On this backdrop, the carrier has positive expectations for the rest of the year.
