Oil Service Industry News

Project has secured $7.3 mln in public funding; sector races to build ever bigger turbines. Danish wind turbine maker Vestas and offshore services firm Maersk Supply Service are teaming up to tackle the cost of transporting and installing ever larger wind turbines. Seeking to remain profitable as European countries phase out subsidies, the industry is turning to ever bigger turbines to harness power more efficiently and respond to pricing pressure for new equipment around the globe. Vestas and fellow Danish company Maersk Supply Service, part of A.P. Moller-Maersk, said on Thursday the initial focus of the partnership would be on developing a new crane to manoeuvre and install mainly onshore but also offshore wind turbines, some of which stand taller than skyscrapers.

Supply firm Farstad Shipping's CEO Karl Johan Bakken repeats is in stand-still agreement with lenders until Oct. * CEO says Oct. * Farstad shares down 4.7 pct to 8.9 crowns at 1004 GMT compared to a rise of 0.5 pct in Oslo's benchmark share index.

Fjords Processing, headquartered in Norway (Fornebu), has won three contracts for the deliveries of process systems for the Johan Sverdrup development in the North Sea. The contracts were signed with Statoil on behalf of the Johan Sverdrup license. The contracts were awarded in tough competition with several larger international companies. Rune Fantoft, CEO of Fjords Processing comments: "The contracts are strategically important for Fjords Processing, being a recently established, Norwegian supplier ."(independent company since the separation from Aker Solutions in September 2014). Fantoft continues: "Taking part in the Johan Sverdrup development and cooperating with Statoil and Aker Solutions is of huge importance for us and for the Norwegian oil service industry.

Electromagnetic Geoservices ASA (EMGS) announce that the Company implements further cost reductions reflecting the challenging market conditions in the oil service industry. As communicated in the first quarter report, the Company initiated cost reduction measures in the beginning of the first quarter. These measures have proven successful. However, due to further delays in contract negotiations and lower than expected demand for EM data, EMGS Management has decided to implement an additional cost reduction program. The key elements of the program include a reduction of EMGS global headcount including consultants by 20% and a reduction of the vessel capacity by one vessel (from four to three).

Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 52.5 million in the fourth quarter 2014, up from USD 41.7 million in the third quarter and from USD 44.9 million in the corresponding quarter in 2013. Contract sales totaled USD 25.5 million, while multi-client sales were at USD 27.0 million this quarter. The Company had an EBITDA of USD 18.6 million and a net income of USD 15.1 million. The Company had record-high multi-client sales in the quarter, mostly from the library in the Barents Sea. In addition, the Company signed contracts for its vessel BOA Thalassa in Asia and a 3.5 months contract for the EM Leader in Uruguay. The Atlantic Guardian spent most of the quarter at yard and contributed with only 0.9 vessel month this quarter. “2014 was a successful year for EMGS.

Norwegian Energy Company ASA has appointed Odd Arne Slettebø as Chief Financial Officer (CFO). Odd Arne Slettebø replaces Tommy Sundt who has been appointed new CEO of the Company. Slettebø joined Noreco in August 2012 and was until now Group Finance Manager of Noreco. “I am very pleased to announce that Odd Arne Slettebø will be my successor as CFO. He is highly skilled and knows the Company very well, which will secure continuity in the team,” says Tommy Sundt, CEO of Noreco. Slettebø is a state authorised public accountant and holds a master degree in Accounting and Auditing from Norwegian School of Economics and Business administration (NHH), in addition to a Bachelor degree in Business administration from Bergen University College.

Kirby Corporation today announced net earnings attributable to Kirby for the fourth quarter ended December 31, 2012 of $57.9 million, or $1.03 per share, compared with $56.2 million, or $1.00 per share, for the 2011 fourth quarter. Revenues for the 2012 fourth quarter were $512.6 million compared with $550.1 million for the 2011 fourth quarter. Joe Pyne, Kirby's Chairman and Chief Executive Officer, commented, "Our fourth quarter results benefited from higher demand and favorable pricing in our coastal marine transportation markets, as well as a contribution from our two fourth quarter coastal acquisitions. We were also able to manage through the Mississippi River System's low water issues and Hurricane Sandy with only an estimated $.02 to $.03 per share negative impact.

ABN AMRO raised its 2001 earnings estimates for several offshore drillers and said the oil service industry was in the early stages of a multiyear growth phase. "We are raising our 2000 and 2001 upstream capital spending growth estimates,'' analyst Asit Sen said in a research note. "We note that our views are above the latest consensus expectations. To reflect higher-than-previously expected day rates/utilization rates, we are also raising our 2001 earnings estimates and price targets," he said. "We believe that the sector is in the early stages of a multiyear growth phase. Accordingly, we would use any periods of significant near-term weakness as buying opportunities," he added.

With over 550 vessels in service, Tidewater, Inc., is by far the world's largest offshore oil service operator. Headquartered in New Orleans, La., Tidewater operates wherever offshore oil and gas is found. While the industry has undergone a slow down in 2002-03, Tidewater is confident that current trends indicate business will improve and the company has been upgrading its fleet of vessels to meet customer needs. "We have a very strong balance sheet," said Stephen Dick, Executive Vice President of operations for North America, North Sea and West Africa for the company. "We have been moving aggressively in the area of new vessel construction, especially U.S. flagged supply boats and crew/supply vessels," Dick added.