Fairstar stays in the black in Q1 as it prepares to enter the "Red Box" in 2012
Fairstar Heavy Transport N.V. (FAIR) has posted an operating profit in the First Quarter of 2012, following on with the positive EBITDA contribution posted by the Company in the Fourth Quarter of 2011.
Fleet utilization for the FJORD and FJELL was at 85% for the Quarter. Fairstar safely executed marine transportation contracts for DSME, Hercules Offshore and Northern Offshore.
Ingmar den Blanken, Treasure of Fairstar commented: "In spite of the challenges we faced in a market that continues to be characterized by deep discounting by our competitors, we achieved an operating profit of USD 72 thousand. Overall profitability was set back by the weakness of the US Dollar versus the Norwegian Krone at the closing date of our accounts. Liquidity was enhanced by the successful placement of 8.1 million shares. Fairstar continues to explore various options available to us in the banking and bond markets to ensure that our cost of capital is appropriate for our funding needs."
Willem Out, COO, added: "The First Quarter of 2011 reflected the dangers of exposure to the spot market for marine heavy transport. All of us at Fairstar are now preparing the Company to enter the "Red Box" stage of our Company's evolution. The FJORD is now on contract with Gorgon and the value of predictable, high margin earnings in the coming years will validate our decision to invest in the FORTE and FINESSE as well as confirming the value of our Company that has not been reflected in the recent offer by our competitor from Breda."
Profile Fairstar Heavy Transport:
Fairstar Heavy Transport N.V. is a leading provider of marine heavy transport solutions, specializing in high-value cargoes for the offshore and onshore energy and construction industries. Fairstar owns and operates two of the most modern semi-submersible heavy transport ships in the global fleet, FJORD and FJELL. The 50,000DWT, open-stern semi-submersible vessels FORTE and FINESSE are currently under construction with Guangzhou Shipbuilding International in China and will be owned and operated by Fairstar when they are delivered in May and October of 2012 respectively. Fairstar is based in Rotterdam and quoted on the Oslo Stock Exchange (ticker: FAIR).