Markets disappoint Eidesvik

Eidesvik Offshore bemoaned a weaker than projected performance from its core markets as it reported a slip in second quarter profitability.

Oslo-listed Eidesvik says cost savings by oil companies and the postponement of projects have created uncertainty in the market.

“The seismic market has been weaker than expected in 2014, and it seems to take some time before we will see a significant improvement,” its quarterly report said.

“Also the North Sea market for PSV was expected to be better this summer, than it turned out to be. Vessels are no leaving the North Sea for other regions.

“However we don’t expect a significant improvement in the market as there is still many newbuilds to be delivered.”

Its comments came as Eidesvik saw second quarter operating profit slip from NOK 67.38m to NOK 63.39m ($10.31m) year-on-year.

Unrealized foreign exchange loss related to loans and forward exchange contracts left it with a bottom line loss of NOK 1.95m for the quarter.