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DOFo - Dof ASA News Story

NOK0.577 0.0  0.0%

Last Trade - 23/04/21

Market Cap £15.3m
Enterprise Value £1.47bn
Revenue £532.0m
Position in Universe 1475th / 1835

DOF optimistic about 2015, could be better than 2014

Fri 14th November, 2014 9:36am
* Q3 EBITDA up to NOK 914 mln 
    * Has high backlog, expects more to come 
    * Tough market but believe its well positioned 
    * Refinancing will give lower financing cost 
    * DOF share flat at 19 crowns 
    * Oil price below $78  LCOF5  
 
    OSLO, Nov 14 (Reuters) - Oil services company DOF  DOF.OL  
expects strong earnings in the fourth quarter, though "slightly 
weaker" than the third, and takes an optimistic view of 2015 
despite the steep fall in oil prices and cost cutting among oil 
companies, it said on Friday.  
    Third quarter operating earnings before depreciation and 
amortisation (EBITDA) rose to 914 million Norwegian 
crowns($134.73 million) from 909 million in same quarter last 
year.   
    Utilisation of the fleet of 70 vessels in supply and subsea  
was 93 percent and is expected to stay high in the fourth 
quarter and into 2015. 
    "For 2015 we are now at 68 percent. The last few months I 
have never been in so many final discussions on long term 
contracts, so I believe this figure could be record high when we 
come to the end of 2014," Chief Executive Officer Mons Aase told 
 the company's third-quarter earnings presentation on Friday. 
    2015 could even be better than the record high operating 
profit of 2014. 
     "If it goes according to our plan on the backlog side, we 
think 2015 will be a decent year and probably a better year than 
2014, but we will talk more about that in February," Aase said. 
"We can't give guarantees but we're optimistic." 
    Geographically there are big differences, and in Norway 
there is almost no tendering activity due to Statoil's  STL.OL  
dominant position and cost cutting plan, while Brazil, America 
and Africa look stronger. 
   "Our focus is to secure work for our fleet," Aase said. 
    He added DOF's global foot print was a big advantage under 
the prevailing market conditions. 
    "It's not enough to have an office in Bergen (in Norway), we 
continue to build our international operations and we think that 
reduces the risk," Aase said. 
    Despite Aase's optimism, DOF shares are down 40 percent this 
year to 19 crowns. In contrast to this, the company estimates 
its net asset value per share at 75.20 crowns at the end of the 
third quarter and a book value of 49.53 crowns per share. 
    Aase added that DOF expected to refinance loans at a lower 
costs. 
    "We are refinancing at lower margins which will reduce our 
finance costs and strengthen cash flow," the CEO said. 
     
    (1 US dollar = 6.7838 Norwegian krone) 
 
 (Reporting by Ole Petter Skonnord, editing by Terje Solsvik) 
 ((olepetter.skonnord@thomsonreuters.com; 0047 23 31 65 97;)) 
 
Keywords: DOF RESULTS OUTLOOK
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