DESS Aquaculture Shipping feels heat from cash squeeze

News
1741

The supply company, Solstad Offshore, which owns 50 percent of the wellboat shipping company DESS Aquaculture Shipping, must re-negotiate their loans.

“Despite signs of an improved market for offshore service vessels and being in compliance with main financial covenants as per 3rd quarter 2018, it is expected that the coming North Sea winter season will be challenging for the Company’s liquidity position,” Solstad Offshore wrote in a stock exchange announcement Monday.

Liquidity
“It has therefore been decided to commence negotiations with lenders and other stakeholders to improve the overall liquidity situation and to create a robust long-term platform for the company,” it said.

The share price of Solstad Offshore, which owns and operates 150 ships, dropped almost 22 percent on the Oslo stock exchange this Monday morning.

“Initiating these negotiations will have no impact for operations, customers, employees or suppliers” emphasised Solstad Offshore.

Joint venture

Fish farming and shipping magnate, John Fredriksen, is a major shareholder in Solstad Offshore, the result of a merger of four Norwegian supply companies. During this merger, the shipping company DESS Aquaculture Shipping was incorporated into Solstad Offshore.

DESS Aquaculture Shipping, recently received the processing boat “Aqua Merdø”, a 50/50 joint venture between Solstad Offshore and Marine Harvest.