Tern Sisters Lift Fred. Olsen’s Offshore Wind Unit

Fred. Olsen Ocean’s offshore wind segment reported NOK 428 million operating revenue in the third quarter of 2016, compared with NOK 254 million in the same period in 2015, mainly due to higher utilisation and rates from the jack-up installation vessels Brave Tern and Bold Tern.

The segment includes Fred. Olsen Windcarrier AS and Universal Foundation Norway AS, both owned 100% by Fred. Olsen Ocean.

The segment’s operating result before depreciation, impairment and finance (EBITDA) for the third quarter increased from NOK -17 million in 2015 to NOK 112 million in 2016. The improvement in EBITDA compared to 2015 is also due to the higher utilization and rates from the vessels.

During the third quarter of 2016, Brave Tern was on contract for Deepwater Wind, installing America’s first offshore wind farm off Block Island, Rhode Island. Bold Tern was deployed on two short projects during the quarter, one operations and maintenance (O&M) work in the UK, and one accommodation contract in Germany.

Fred. Olsen Windcarrier A/S also had five of its eight crew transfer vessels (CTVs) employed during the quarter. Global Wind Service A/S (GWS) continued to see good demand for their services although, as expected, somewhat lower activity in the offshore wind market year-to-date.

The activities of Fred. Olsen Ocean in the three first quarters of 2016 were, as expected, impacted by lower offshore wind activities in general, as well as the fact that both Tern vessels were undergoing upgrades for almost three months each during 2016, the company said.

In addition, the company’s net result for the first three quarters was negatively impacted by the decision in an arbitration case in UK in the first quarter related to a metmast contract entered into in 2011. The company said that the ruling had a NOK 58 million negative impact on the NOK – 2016 million net result for the three quarters.