- Total revenue from continuing operations was MSEK 75 (278)
- EBITDA from continuing operations was MSEK -52 (67)
- Result after tax including discontinued operations was MSEK -145 (-123)
- Result after tax per share including discontinued operations was SEK -0.8 (-0.7)
Year to date
- Total revenue from continuing operations was MSEK 760 (1,114)
- EBITDA from continuing operations was MSEK 160 (292)
- Result after tax including discontinued operations was MSEK -406 (-440)
- Result after tax per share was SEK -2.2 (-2.5)
Summary of events in Q4
- EBITDA for Q4 from continuing operations was MSEK -52 (67).
- The average fixture rate in Q4 was USD 15,000 (59,100) for the AHTS fleet and USD 0 (6,500) for the PSV fleet. The average utilization in Q4 was 28% (68) for the AHTS fleet and 0% (70) for the PSV fleet.
- On 21 November 2016, Odin Viking SPV AS and VSS A/S entered into an agreement to amend the terms in the bareboat charter party. This finalized the financial restructuring of VSS A/S, subject to an equity issue at an agreed level in Viking Supply Ships AB (VSS AB) and a subsequent equity injection by the parent company into VSS A/S.
- During Q4, all of the share issues that form part of the Group’s financial restructuring have been completed. VSS AB has received new equity in the amount of MSEK 340 net after expenses. MSEK 43 of the capital increase was received after the end of Q4.
- According to the restructuring agreement made with the owners in FRN Viking Supply Ships A/S Senior Unsecured Open Bond Issue 2012/2017, 50% of the outstanding par value of bonds was to be converted to quoted class B shares in VSS A/S’ parent company, VSS AB, at SEK 1.5 per share, the bonds being valued at 55% of par. The remaining 50% of the outstanding bonds was to be redeemed in cash at a price corresponding to 35% of par. The settlement by way of cash redemption and the set-off equity issue in VSS AB was completed on 12 January 2017, with the bond being delisted from Nordic ABM as of the same date.
- As a part of the restructuring agreement, all loans in VSS A/S previously denominated in NOK and GBP have been converted to USD during Q4.
- To explore future commercial opportunities in Russia and strengthen its footprint in the region, VSS A/S has entered into a strategic cooperation with Sevnor Ltd, a shipping and offshore company with extensive presence in the Russian offshore market. As a consequence, VSS A/S has decided to close down its own offices in Moscow and Sakhalin. Future operations will be run in cooperation between the company and Sevnor Ltd.
- The process to discontinue the remaining operations within TransAtlantic AB (TA AB) continued during the fourth quarter. VSS AB, through its fully owned subsidiary TA AB, has during Q4 novated three long term bareboat charter agreements for the RoRo vessels TransPaper, TransPulp and TransTimber to Svenska Orient Linien (SOL) together with time charter agreements for the same vessels. The transaction had a positive effect on the profit and loss and liquidity during Q4 of MSEK 17. Furthermore, TA AB concluded the agreement to sell the vessel TransFighter during Q4. The sale had no effect on the profit and loss and no liquidity effect as the sales proceeds were fully utilized for amortization of vessel loans. The sale of TransReel, which also was concluded during Q4, gave a positive result of MSEK 10 in Q4, but as the funds were used to cover amortization of vessel loans it had no liquidity effect.
- During Q4 an impairment charge of MSEK 46 was recognized related to the PSV fleet.
- The Board of Directors of Viking Supply Ships AB has appointed Mr. Trond Myklebust as Chief Executive Officer (CEO) of Viking Supply Ships AB. Mr. Myklebust will also act as CEO of Viking Supply Ships A/S, and has since late January been functioning as CEO in both companies. At the same time, interim CEO Bengt A. Rem stepped down as CEO and was reappointed Chairman of the Board. Former Chairman of the Board Folke Patriksson will continue as Deputy Chairman.
The bond settlement by way of cash redemption and the set-off equity issue in VSS AB was completed on 12 January 2017. Under the settlement, bondholders of record as of 30 December 2016 (the “Record Date”) have received 36,821,058 new class B-shares in VSS AB and NOK 34,419,682.96 in cash as payment of the total outstanding principal amount – NOK 199,341,169, and holders as of the date of the Record Date of the right to receive interest coupon due on the bonds on 21 June 2016 (“Eligible Couponholders”) (in total NOK 9,232,561.83) have received 870,650 new class B-shares and NOK 813,868.94 in cash. The cash redemption is partly funded by a loan of MNOK 20 provided by one of VSS A/S’ existing lenders. The bond settlement generated a gain of MNOK 110 which has been recognized in January 2017.
Press and analyst conference
In conjunction with the publication of this interim report, an earnings call will take place on Tuesday 14 February, 2017 at 10.00 am.
- Phone: +46 (0) 8 50520424
- Password: Viking Supply Ships Q4 2016
Please dial in 5-10 minutes before the call starts.
For further information, please contact:
Ulrik Hegelund, CFO, ph. +45 41 77 83 97, e-mail firstname.lastname@example.org
Morten G. Aggvin, IR & Treasury Director, ph. +47 41 04 71 25, e-mail email@example.com
This information is information that Viking Supply Ships AB is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication at 08:30 CET on 14 February 2017.