Deep Sea Supply : Deep Sea Supply : Increased revenues and establishing Joint
Venture in Brazil
Deep Sea Supply ("DESS" or "Company") reports consolidated revenues of MUSD
38.9 in 4Q 2012 compared to MUSD 32.1 in 4Q 2011. Total operating expenses in
4Q 2012 were MUSD 23.6 compared to MUSD 19.4 in 4Q 2011. This resulted in
EBITDA of MUSD 16.6 in 4Q 2012, compared to MUSD 14.0 in 4Q 2011. Following
financial expenses of MUSD 6.9, the pre-tax result was a profit of MUSD 1.1 in
4Q 2012, compared to a negative MUSD 1.3 in 4Q 2011.
For the twelve months period ended 31 December 2012, the Company reports
consolidated revenues of MUSD 124.1, EBITDA of MUSD 50.5 and pre-tax result of
a negative MUSD 3.6, compared to revenues of MUSD 115.9, EBITDA of MUSD 60.7
(positively influenced by a gain on sale of MUSD 24.1 in 2Q 2011) and pre-tax
result of MUSD 0.8 for the same period in 2011.
During 2012 and the first two months of 2013, DESS has been awarded in total
11 long term charter contracts at attractive levels. The high contract
coverage and firm contract backlog of MUSD 327 as of 1 February 2013 provides
good earnings visibility during 2013 and 2014. The Company has removed 2
vessels from the North Sea spot market to commence term charter contracts in
Brazil, and therefore currently only has 1 vessel operating in the North Sea
DESS is encouraged by the good progress of the joint venture transaction with
BTG Pactual in Brazil. Necessary third party approvals are well in progress,
and the Company expects to close the transaction end of March. By establishing
the joint venture and buying six newbuilding PSVs together with BTG, the Joint
Venture will own a fleet of 21 vessels and be the third largest OSV owner in
Brazil, one of the world's largest markets for OSVs.
The Company also sees attractive opportunities in areas like West Africa, and
will actively seek to increase its fleet and further strengthen its position
by focusing more on such areas.
DESS remains cautiously optimistic for the OSV market in 2013. Many new rigs
will be delivered this year, which is positive and moving the supply/demand
balance in favor of OSV owners. A number of OSVs (especially PSVs) have been
ordered in 2012, but the Company also experiences a continued increased demand
for large and modern PSVs. Tendering activity is high internationally.
Increased activity, both in established and new markets, continue to drive
demand for large and modern OSVs, and Deep Sea Supply's fleet of cost
efficient vessels is well positioned to take part of this development.
Limassol, 27 February 2013
Deep Sea Supply Plc
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
4th Quarter 2012 Financial Report
4th Quarter 2012 Presentation
This announcement is distributed by Thomson Reuters on behalf of Thomson
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(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Deep Sea Supply via Thomson Reuters ONE
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