FAIRSTAR HEAVY TRANSPORT NV releases 2010 Fourth Quarter results and publishes fleet utilization update for 2011/2012/2013
(Thomson Reuters ONE) -
Fairstar Heavy Transport NV (FAIR) announced today an EBITDA loss of
USD 2.7 million for the Fourth Quarter of 2010.
Fleet utilization of FJORD and FJELL for the quarter was 32%, the lowest level
ever experienced by Fairstar since the FJORD and FJELL went into service in
2008 and 2009 respectively. The disappointing operating results were offset by a
significant increase in cash liquidity of over USD 29 million. The balance sheet
was further enhanced by raising USD 12.3 million in additional equity in
November of 2010.
The Fairstar new build semi-submersible, open stern, 50,000DWT vessels FORTE and
FINESSE are fully financed and will be delivered by Guangzhou Shipbuilding
International (GSI)
in the Second and Fourth Quarters of 2012.
Earlier this month, Fairstar has signed a Letter of Intent to provide a total
land and marine logistics solution to transport 115 modules as well as related
equipment from the Agrium Kenai Nitrogen Operations, comprising Plants 4, 5, and
6, from Kenai, Alaska to Ossiomo, Nigeria. Under the terms of the LOI, Fairstar
will be responsible for the interface management of the land transportation in
Alaska with Mammoet as well as the land transportation interface in Nigeria with
Premier Logistics. The Marine Transportation Contract, expected to be finalized
in March, has an approximate value of USD 25 million and will require both the
FJORD and FJELL to mobilize to Alaska in early July in order to facilitate the
loading of the modules for transport to Nigeria. Once FJORD has discharged its
modules in Nigeria, it will immediately proceed to Angola where it is contracted
to load FPSO components for the DSME CLOV FPSO Project and sail with this cargo
to the DSME Yard in Okpo, Korea. Subsequent to the DSME contract, FJORD will
sail to either the Hyundai Yard in Korea or another site designated by the
Kellogg Joint Venture - Gorgon to pick up the first of its multiple voyage
modules for transport to the Gorgon LNG facility on Barrow Island, Australia.
FJORD is now scheduled to be fully utilized for a period of approximately two
years from July 2011 at day rates averaging throughout the period of over USD
80,000. The FJELL is also scheduled to arrive in Kenai, Alaska in early July and
will sail to Nigeria shortly after the FJORD has departed. FJELL will discharge
its cargo in Nigeria sometime in December 2011. Because of the need to use both
FJORD and FJELL for this project, Fairstar has declined the request to cut the
transportation rate previously agreed for the return of the JB 115 from
Melbourne to Rotterdam. The rate suggested to us by the client holding the
return option was very close to break even and would have positioned the FJELL
back in Rotterdam causing an unattractive increase in the mobilization costs
involved in sailing to Alaska. The total transportation solution provided by
Fairstar from Alaska to Nigeria is the first of its kind in the Marine Heavy
Transport Industry. The complexity of combining the land transportation provided
by Mammoet and Premier Logistics with the marine transportation interfaces is a
reflection of Fairstar's growing reputation as a skilled project manager able to
combine the proper ships with the necessary imagination required to successfully
execute a "door to door" logistics solution.
The FORTE will join the FJORD in service on Gorgon immediately upon delivery by
GSI in April 2012 and is expected to be under contract for at least 18 months
from the delivery date. There has been a significant increase in Tender activity
for energy infrastructure projects both on-shore and off-shore in recent months.
Fairstar has offered FJELL and FINESSE for projects in 2012 and 2013. FJORD and
FORTE are under consideration for multi voyage contracts in 2014 and 2015. In
summary, Fairstar is highly optimistic about the future of marine heavy
transport services for major energy and construction infrastructure projects. We
anticipate a future shortage of modern, open stern, semi-submersible, asbestos
free vessels. We intend to invest in the experienced crews required to operate
them. We foresee the increasing, environmental, safety and technical demands
expected by owners and sponsors of multi-billion dollar energy projects. We are
certain these developments will continue to raise the barriers of entry into
this market segment, allowing Fairstar to maintain our sustainable competitive
advantage and the related inherent pricing power. Fairstar re-affirms its
guidance of 80% full fleet utilization as well as T/C rates averaging USD
80,000 per day from July of 2011 throughout the 2014 financial year.
Philip Adkins, Chief Executive of Fairstar, summed up the current market and the
future of Fairstar as follows: "Early in 2010 the Fairstar Board of Directors,
working closely with the Management Team, undertook a careful examination of the
current and future markets for marine heavy transportation. We saw an industry
with high fixed capital costs, excessive leverage, ageing ships, over capacity
and a reliance on third party low cost "rent-a-crews". We also saw an
opportunity in the Gorgon Tender Process to transform Fairstar and change the
entire industry. Our vision is now beginning to show signs of great promise for
all our stakeholders. A year from now, Fairstar will be on the cusp of owning
and operating a fleet of the newest, open stern, semi-submersible ships
available. These ships will be manned by some of the most experienced crews in
the industry and Fairstar will continue to be led by a management team fiercely
determined to create and preserve sustainable long term value for all our
stakeholders. Leadership in our industry will not be determined by size"
For further information please contact:
Philip Adkins, CEO (philip.adkins(at)fairstar.com)
Mark de Haas, CFO (mark.de.haas(at)fairstar.com)
Web:www.fairstar.com
Tel: +31 (0)10-403 5333
***
Profile Fairstar Heavy Transport
Fairstar Heavy Transport NV is the leading provider of marine heavy transport
solutions involving high-value cargoes for the offshore energy and construction
industries. Fairstar owns and operates two of the most modern semi-submersible
heavy transport ships in the global fleet, FJORD and FJELL. Fairstar is based in
Rotterdam and quoted on the Oslo Stock Exchange (ticker: FAIR).
Fairstar Q4 2010 report:
http://hugin.info/143837/R/1487301/422708.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Fairstar Heavy Transport NV via Thomson Reuters ONE
[HUG#1487301]
Unternehmensinformation / Kurzprofil:
Datum: 09.02.2011 - 18:10 Uhr
Sprache: Deutsch
News-ID 51290
Anzahl Zeichen: 7777
contact information:
Town:
ROTTERDAM
Kategorie:
Business News
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