Oceanteam eyes 'bright future'
Offshore contractor says its ready to overcome its challenging financial situation
Offshore contractor Oceanteam has expressed confidence in its viability as a business and is prepared to overcome the financial hurdles it faces.
Solid revenue, strong focus on structural cost reductions, reduction of capex commitments, geographical opportunities, diversified business activities and a new chief financial officer will help, the company said.
Oceanteam started a financial restructuring process last month due to challenging market conditions and didn’t meet the interest payments on its senior unsecured bond due 24 October.
High capital costs and maturing debt in 2017 have led to a challenging financial situation, it said.
The company has started talking with banks and bondholders to secure a structurally lower cost of capital and a later maturity of its loans.
The deferral of the bond payment means cash is being retained by the banks and advisor costs have risen, it said.
During the first weeks of the fourth quarter, the company has started to tackle its liquidity squeeze by payment issues on two smaller vessels in Venezuela and by some of the clients of its solutions unit.
Oceanteam has chosen a strategy aimed at keeping the utilisation of its assets high and securing a long-term backlog.
Its EBITDA was €3.6m in the third quarter, compared with about €6m a year ago, as revenue remained stable at around €11m.
In the quarter, its solutions unit signed its first long-term deal for engineering and consultancy services in China, a project that includes work related to offshore wind installations.