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Viking Supply Ships A/S reports sale of three ships; Expects loss in H2 1018.

NORDIC BUSINESS REPORT-August 13, 2018-Viking Supply Ships A/S reports sale of three ships; Expects loss in H2 1018

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Viking Supply Ships AS, a wholly owned subsidiary of Viking Supply Ships AB (STO:VSSABB) (VSS), announced on Friday the sale of three Icebreakers, Tor Viking, Balder Viking and Vidar Viking to Her Majesty the Queen in Right of Canada.

Reportedly, the impact of this sale on net result of the sale is estimated at USD274m and will be booked in Q3 2018. This transaction is expected to close by the end of August 2018.

Also, VSS will report a first half-year net result to be a loss of USD40m, consisting of a loss from the sale of three PSV's of USD12m, write down of book values of the remaining two PSV's of USD8m and an operating loss of USD20m.

According to VSS, the offshore supply market was very disappointing throughout the first half year and the very weak market has caused both fixture rates and utilisation to remain on unsatisfactory levels.

In addition, VSS expects to book a loss of approximately USD18m in relation to the planned sale of Odin Viking, which is expected to be booked in Q3 2018 or Q4 2018. No contract has as of yet been entered into.

Following these transactions, VSS' fleet will consist of three Ice-1A and one Ice-1A Super classed AHTS', one regular AHTS (Odin Viking) and two PSV's, of which the latter three vessels are actively marketed for sale.

VSS will maintain its core competence operating in harsh environment, and through the contract with The Swedish Maritime Authority, VSS will also maintain its icebreaking competence.

Viking Supply Ships AB is a leading company within offshore and ice -breaking services, with activities primarily in Arctic and subarctic areas. The company also has the operational and technical management for the five Swedish state owned ice-breakers (Swedish Maritime Administration).

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Publication:Nordic Business Report
Date:Aug 13, 2018
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