SKÄRHAMN, Sweden--(BUSINESS WIRE)--Regulatory News:
As previously communicated, Viking Supply Ships A/S (OSE:VSS01) (STO:VSSAB) has been in discussions with its lenders during the past months for the purpose of finding a long-term financing solution. Viking Supply Ships AB announced on 2 May 2016 that it had entered into an in principle agreement with its lenders, pending certain conditions precedent. The dialogue is still not completed, but Viking Supply Ships is confident that a restructuring will be completed within the foreseeable future.
As previously communicated, the Annual General Meeting and the publication of the Q1 2016 Financial report was postponed due to the prolonged negotiations with the lenders. Viking Supply Ships AB´s Annual General Meeting will be held on Thursday 30 June, 2016 at 13:30 p.m. at Mannheimer Swartling’s premises at Östra Hamngatan 16 in Gothenburg, Sweden. The official notification will be published on the company’s website and in Post- and Inrikes Tidningar no later than four (4) weeks prior to the AGM. The Q1 2016 financial report will be published on 10 June 08:30.
The group’s net sales decreased year-on-year to MSEK 1,977 (3,190). Net result after tax was MSEK -440 (200). As previously communicated, the publication of the Q1 2016 financial report was postponed due to the extended negotiations with the Group’s lenders.
· Viking Supply Ships entered into a contract with an oil-major for the charter of Brage Viking. The contract duration was for two and a half year, with optional periods until June 2019.
· In order to remain competitive and reduce costs the management of Viking Supply Ships decided to close down the Aberdeen office with effect from July 2015. The change in the organization will reduce the overhead costs for the segment and ensure that the financial solidity of Viking Supply Ships remains strong.
· The sale of the small bulk vessel TransForte was concluded in February. The transaction brought positive cash effects of net MSEK 3 after repayment of related ship loans.
· A new contract with an oil and gas company for Vidar Viking was entered into and the vessel is firm until August 2016, with options to extend until February 2017. The contract value including options is estimated to MUSD 45.
· A renewed seven year management contract of the state-owned icebreaker fleet was entered into with the Swedish Maritime Administration.
· A subsequent dividend of SEK 0.55 per share was concluded in June according to resolutions on the Extraordinary General Meeting, totalling MSEK 98. · The company name was changed from Rederi AB Transatlantic to Viking Supply Ships AB.
· Christian W. Berg was appointed as the Group´s CEO in April and continues as CEO of Viking Supply Ships A/S.
· Niels J. Kindberg was appointed as interim Group CFO.
· The contract for Njord Viking was extended. The vessel is now firm to 31 December 2016, with options to extend the contract with 2 x 6 months. The total value of the extended period is about MSEK 270 including optional periods.
· As a response to the continued weak market conditions, VSS A/S initiated a new Market Adaption Program (MAP), with the ambition to reduce yearly operational costs with up to MSEK 70. This came as an addition to already implemented yearly cost reductions of MSEK 45.
· Ulrik Hegelund was appointed Chief Financial Officer in Viking Supply Ships A/S as well as Viking Supply Ships AB with effect as of 1 September 2015.
· The sales of TransAtlantic Container AB and the ship management operations were concluded during December and resulted in a positive book gain of MSEK 35.
· Due to the challenging market conditions, VSS A/S has recognized an additional impairment loss during Q4 of MSEK 77 related to the PSV fleet.
· The deteriorated market conditions within the global oil and gas market have continued to negatively impact the earnings and financial position of the Group. The Group’s liquidity position is strained and in the current market, the Group is unable to fulfil existing covenant undertakings in its loan agreements. A solution with the Group’s lenders is necessary and accordingly, the Group, during Q4 2015, initiated a dialogue with its lenders, with an ambition to secure a long term stable financing solution within Q1 2016.
· In December, an early termination of the contract for the AHTS Brage Viking was received, but the vessel will remain on-hire to mid-August 2016. The termination represents a loss of income during the remaining firm period of the contract of MUSD 33 in 2016 and 2017.
- Towards the end of the quarter, Tor Viking completed its contract with Shell US. On its way back to the North Sea, the vessel transited the Northern Sea Route unassisted, which had never been performed this late in the season before.
Viking Supply Ships AB (publ) is a Swedish company with headquarter in Gothenburg, Sweden. Viking Supply Ships A/S is a subsidiary of Viking Supply Ships AB (publ). In addition Viking Supply Ships AB (publ) has the subsidiary TransAtlantic AB. The operations are focused on offshore and icebreaking primarily in Arctic and subarctic areas as well as on Shipping services mainly between the Baltic Sea and the Continent. The company has in total about 500 employees and the turnover in 2015 was MSEK 1,977. The company’s B-shares are listed on the NASDAQ Stockholm, Small Cap segment. For further information, please visit: www.vikingsupply.com
Viking Supply Ships AB is obliged to make this information public according to the Financial Markets Act and/or the Financial Instruments Trading Act (Sw: lagen om värdepappersmarknaden and lagen om handel med finansiella instrument). The information was submitted for publication on 1 June 2016 at 08:30.
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