July 22 - Fairstar Heavy Transport NV (FAIR) has seen decline in top line revenue as well as earnings for the first six months of 2010.
Time Charter Revenues of USD15.9 million realised EBITDA of USD8.9 million for the period.
The company's financial position strengthened considerably in both the first and second quarters with Net Interest Bearing Debt reduced by USD35.4 million, whilst equity increased by the amount of USD44 million.
The company said that its financial performance in the first six months of 2010 reflected the weak global economy as well as the excess of available capacity in the spot market for marine heavy transport services.
"The current spot market for marine heavy transport has continued to decline. There is an excess of capacity of ships in the spot market today chasing low-value cargoes at around USD40,000 per day," stated Fairstar CEO Philip Adkins.
"Fairstar will continue to focus our resources on high-value, multi-voyage, energy infrastructure projects where our ships have significant advantages in both performance and pricing power. The market outlook for this segment is strong and will continue to grow. Fairstar is tendering for a number of projects requiring the transportation of modules, topsides, jackets and other offshore platform-related heavy components.
"Successfully winning only a portion of the available work, will keep FJORD, FJELL, FORTE and FINESSE profitably employed from 2012 until at least 2016.
"Fairstar has reduced its term debt and strengthened our balance sheet. A strong financial foundation will be necessary to maintain access to new investment capital in the future.
"We believe there will be a shortage of true open-stern, semi-submersible ships at the time when demand will be growing. Fairstar has positioned itself to compete successfully in years to come by boldly expanding our fleet.
"The Gorgon LNG Project is one of many future opportunities to capture significant value for our shareholders and reward them for their support. We are determined to demonstrate that leadership in our industry will be determined by vision and performance, not by size."