Deep Sea Supply announces fleet growth to 40 vessels and re-introducing dividends
In 2Q 2014, Deep Sea Supply reports consolidated revenues of MUSD 39.7, EBITDA of MUSD 20.3 (51%) and pre-tax profit of MUSD 4.1, the company said in its press release. For the six months period ended 30 June 2014, the Company reports consolidated revenues of MUSD 75.0, EBITDA of MUSD 38.8 (52 %) and pre-tax result of MUSD 8.1.
The Board of Directors has decided to re-introduce quarterly dividend payments and has declared USD 0.02 in dividend per share for 2Q 2014. The ex-dividend date has been set to 14 August 2014 and the payment date will be on or about 26 August 2014. Comparing 2Q 2014 financial figures with 1Q 2014, revenues increased by MUSD 4.3 or 12%. Main reasons for the increase are the commencement of term contracts for PSVs and improved utilization of large AHTS vessels.
The vessels' operating expenses increased with MUSD 2.3 from 1Q 2014 to 2Q 2014. Main reasons for the increase are the new vessels coming into operation during first half of 2014, combined with higher maintenance costs in 2Q 2014 than in 1Q 2014. Activity levels are quite high in the OSV markets internationally. In Brazil, Petrobras has increased their tendering activity, and the Company also sees good activity levels for long term contracts for PSVs in the North Sea, Asia and Africa. The spot market for both AHTS and PSV in the North Sea remains volatile and has been disappointing in 2Q 2014.
The Company has limited exposure with only 1 vessel operating in the North Sea spot market. The Company's high contract coverage and firm contract backlog of MUSD 211 as of 1 July 2014 provides good earnings visibility. The key focus going forward will be to further build on this by ensuring swift delivery, efficient mobilization and attractive long term employment for the remaining newbuildings. The Company is working on several promising long term employment opportunities. However also expect to see some short and medium term employment in the coming months.
