Super Strong Solstad Offshore

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(million Norwegian kroner)	2. q./22	Q2/21
operating income	1,750.4	1,264.4
Operating profit	551.3	−64.3
Result before taxes	−848.2	−260.5
Result after tax	−849.7	−269.9

Solstad Offshore generated revenue of NOK 1.75 billion in the second quarter, an increase of 38 percent over the same period last year. The reason for the increase is due to an increase in the number of ships in operation, higher rates of the day and better use of the fleet.

Skudeneshavn Shipping’s adjusted operating profit before depreciation and write-off was NOK 613 million, nearly doubling from NOK 309 million in the second quarter of last year.

Ebitda’s result is the company’s largest in a single quarter. The construction vessel segment led the way in growth, but the anchor handling and supply sectors also showed solid progress in the North Sea tight spot market, the shipping company says.

The number of applications accepted this quarter was about NOK 2 billion. At the end of the period, the shipping company announced new contracts worth more than half a billion on the exchange.

Demand reserve is now 7.2 billion NOK. Including options, there will be talk of 13.9 billion.

Currency shock in the billions

However, things look bleaker in the accounts. The pre-tax result came in at minus 848.2 million NOK, compared to a deficit of NOK 260.5 million in the second quarter of 2021.

The financial result is weighed here with a deficit of 1.4 billion, where unrealized currency losses are set at 1.1 billion and interest costs are set at 309 million. In contrast, there was a negative currency impact of 90 Millions In the second quarter of last year, interest costs amounted to 254 million.

The currency collapse is explained by the fact that much of the shipping company’s debt is in dollars. The higher interest costs are explained by the higher interest rate.

Net interest-bearing debt at the end of the quarter was NOK 20.8 billion, compared to NOK 19.4 billion a year earlier, as currency changes were behind the increase.

In the first quarter of this year, Solstad Offshore posted a $220 million loss before tax, but the company also announced an ever-improving market outlook and a big outlook for offshore activity.

Aker Capital of Kjell Inge Røkk is the shipping company’s largest shareholder with a 24.8 percent stake. Solstad Offshore’s fleet consists of 80 active vessels. Average usage in the second quarter was 91 percent, compared to 88 percent in the second quarter of 2021.