DOF Subsea’s profits fell 60% in the second quarter as activity levels amid the oil price downturn remained depressed.
DOF Subsea, a subsidiary of Norwegian energy service firm DOF Group, said there was a “seasonal increase” in project activity levels during the quarter, particularly in the North Sea and North America.
In the North Sea, DOF subsea has been doing engineering, survey, light construction and installation work for Shell, Eni, Maersk, BW, Teekay and HMC.
But a number of vessels were being upgraded and others were being redeployed during the period under review, meaning fleet utilisation went down to 87% from 90%
Operating income dropped 13% year-on-year to NOK 1.6billion (£150million), while pre-tax profits fell 59% to £12.8million in the second quarter.
DOF Subsea’s global headcount went up to 1,590 at the end of June from 1,468 at the end of the first quarter.
But in May the subsidiary’s Aberdeen arm said it was in consultation with workers over redundancies, with about 20 people expected to be laid off.
The company employs more than 50 people in the Granite City.
DOF Subsea’s board members said in a statement they were “pleased” with the figures.
They added: “In order to adjust the group’s capacity to the challenging market conditions, needed cost cutting measures have continued in 2016.
“The organization has been adapted to the underlying activity, vessels have been re-allocated between regions to secure utilization and chartered-in vessels from 3rd parties have been redelivered.”
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