Deep Sea Reports Strong Growth in 3Q 2007
The 3rd quarter of 2007 was another quarter with strong financial performance and a high level of activity for Deep Sea Supply Plc. Revenues for the 3rd quarter increased to US$39 million or the highest in the Company's history and stable operating expenses resulted in yet an all time high EBITDA. The Board suggests a distribution to shareholders of US$ 0.40 per share.
The revenues in the 3rd quarter improved to $39 million (compared to $29,3 million in the 2nd. quarter) due to improved utilization on existing vessels, new vessel deliveries and improved rates. The Company's operating expenses were $9,2 million ($9,1 million). EBITDA was $28,7 million ($19,0 million), EBIT was $24,8 million ($15,3 million). Financial items were negative $ 7,9 million (negative $2,4 mill.) mainly due to unrealized currency losses due to NOK loans. Net result after taxes $16,9 million ($12,9 million) or $0,13 per share.
In the 3rd quarter, the Company took delivery of 3 newbuildings and acquired three additional newbuilding contracts for two AHTS vessels to be delivered from Jaya Shipbuilding in Singapore and one PSV to be delivered from Karmsund Shipyard, Norway. Deep Sea Supply has currently 15 vessels in operation and 16 newbuilding contracts at shipyards in Norway, Singapore and India.
In order to optimize return on existing equity, the Board of Directors suggests a distribution to shareholders for the 3rd quarter of $0,40 per share. Such distribution to shareholders will be made after a sale and leaseback transaction entered into with Ship Finance International Ltd., which will generate approximately $50 million of excess cash after payment of existing debt. The distribution is subject to approval by the Shareholders' Meeting and from Cyprus authorities (as our distribution of dividend is made by a reduction in the Company's share premium reserve)
The impact from new vessels delivered, improved rates on charter contracts and an expected strong spot market in the North Sea should provide for a continued strong financial performance from Deep Sea Supply also in the 4th quarter of 2007. Market consensus is that the current market will remain strong for the next 2-3 years.
- Norwegian Firms to Create Offshore Oil Industry Supply Vessels Giant (Feb 06)
- Deep Sea Supply Scores Charter Contracts for AHTS Vessels (Apr 26)
- Deep Sea Supply Takes Delivery of Newbuilding (Jan 13)