Cecon slips into fourth quarter loss

Published 01.03.2010 09:56:36 by John Bradbury

Subsea contractor Cecon ASA filed a NKr 1,113 million (US $188.59 m) loss for the fourth quarter 2009 narrowing its losses from NKr 18,448 million a year before.

However revenue for the fourth quarter saw a near tenfold increased to NKR 178,844 million from NKr 18,150 million in the fourth quarter of 2008.

And for the full year Arendal-based Cecon saw revenue rise 42.6% to NKr 381.148 million from NKr 261.196 million a year before, while profit for the full year period was up 121% to NKr 41,031 million from NKR 18.488 million in 2008.

Reviewing operations in the fourth quarter last year Cecon signed a five plus five-year charter deal with UK-based Expro Group for the supply of a newbuild well intervention vessel, completed two Angolan subsea contracts, repaid two debts and carried out a new private placement to raise NKr 56.3 million of new capital.

Looking at long term market opportunities, Cecon says its subsea pipelay market has not been substantially hit by worldwide financial problems: “Demand for the group's line of services in the offshore support industry has not been reduced, however uncertainties on [in] the market may prevail for the medium term, this being a possible consequence of likely cut backs in investments by oil companies due to oil price variations ” the company said in its results statement today.

And it added a more update note for the future: “Cecon expects to see a continued positive development for the group's service with specific project awards during 2010. In the short term there are potential employment opportunities both in the North Sea, West Africa, Asia and South America.

“On a slightly longer term, prospective projects in the rest of the world are also being addressed,” Cecon stated.

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