Norwegian offshore vessel owner Eidesvik has confirmed it will need to undertake a financial restructuring if the market does not improve.
Announcing its first quarter 2017 financials, the company said Eidesvik Offshore ASA Group will almost certainly need to restructure because it does not see any material improvement in the market in the short term.
“We do, however, see an increasing focus internationally on vessels operated on liquefied natural gas (LNG) and think that this market will strengthen going forward, including offshore supply vessels operated on LNG," said Eidesvik.
“In the subsea segment we see increased activity in the long term, but a challenging market is expected in the short term,” said the company. “We have observed some increase in activity in the marine seismic segment, but we expect a challenging market for this segment for some time.”
In November 2016 Eidesvik said it saw 2018 as a “crunch year” for the company and needed to see an improvement in the market by then.
Eidesvik has a NKr300 million (US$35.5 million) bond loan with a maturity date in the second quarter of 2018, and said that, if the market does not improve considerably by 2018 the group would not be able to service its continuing liabilities. It also noted that it had hired a financial advisor to assess its capital situation.