Maersk Supply Service reported an underlying loss of USD 14m in Q3 2017, compared to a loss of USD 11m in Q3 2016. This result is driven by a market that continues to be subdued and fewer legacy contracts offset by a periodically stronger spot market in the quarter.
Market demand remains a challenge due to low activity in the offshore industry. Approximately 30% of the global offshore supply industry’s vessels are in lay up, including 12 Maersk Supply Service vessels. Last year, in response to the over-supply, Maersk Supply Service initiated a divestment programme which is progressing as planned. Since Q3 2016,12 vessels have been divested and there are plans to divest five additional vessels.
“The financial result for Q3 reflects the difficult market we operate in. It is never satisfactory to report a loss, however the result is better than expected due to a periodically stonger spot market in the North Sea and lowered costs from laying up additional vessels and divestments,” says CEO Steen S. Karstensen.
Going into Q4 2017, Maersk Supply Service has a contract coverage for the remainder of 2017 of 38%. For 2018, contract coverage is at 24%, up from 19% last quarter. The gross utilisation in Q3 was 52%.
New contracts and progress on projects
Maersk Supply Service’s Integrated Solutions business area continues to show progress, executing safely on its key projects. On the Culzean project, Maersk Supply Service has successfully completed anchor installation and testing of the mooring system. On the Janice project, the removal of subsea equipment and pipeline continued over the summer, including the removal of flexible pipe using an innovative approach which reduces time spent for the customer.
Maersk Supply Service secured important term contracts in Canada, Angola and Brazil in Q3, albeit at relatively low rate levels. One of Maersk Supply Service’s new-buildings, Maersk Mariner, arrived to Australia and started a firm 2-month contract with options for Woodside Energy directly from yard delivery.
“Maersk Supply Service continues to build a strong track record for its Integrated Solution business area where we provide a larger scope of work for our customers. We see promising opportunities in the market to increase our presence in this area, “ says Karstensen.
Maersk Supply Service provides marine services and integrated solutions to the energy sector worldwide. Maersk Supply Service is the market leader in deep-water services such as anchor handling in ultra-deep water, mooring installations, rig moves and transport of equipment to drilling rigs and production units.
Maersk Supply Service employs an international staff of around 1100 offshore and 200 onshore people. Headquartered in Lyngby, Denmark, Maersk Supply Service is represented globally with offices in Aberdeen, Houston, St. John’s, Rio de Janeiro, Accra, Lagos, Luanda, Singapore and Perth.
Maersk Supply Service is a part of A.P. Møller – Mærsk A/S.
For more information about Maersk Supply Service, please visit the website at www.maersksupplyservice.com