Increased charter rates and OSV demand lift Siem Offshore up

(Offshore-energy.biz) Siem Offshore has reported operating revenues of $336 million for the fiscal year 2023, an increase from $274.3 million in 2022, and $85.2 million for Q4 2023, compared to $64.3 million in Q4 2022, said to be caused by an uplift in charter rates, generated by increased demand for offshore support vessels (OSVs) and in particular for the anchor-handling tug supply (AHTS) vessels segment.

In its Q4 2023 financial report, Siem said the operating margin was $40.1 million, an increase from $20.8 million in the same period of 2022, and operating profit/(loss) was $90.5 million, compared to $5.5 million in Q4 2022, after depreciation and amortization expenses of $16.4 million (2022: $15.2 million) and after reversal of impairments of $67 million (2022: nil).

According to the company, the fourth quarter was as expected, characterized by reduced activity as the industry moves into the low season for offshore operations. The North Sea spot market was particularly challenging for the AHTS segment in general, with many available vessels, which led to low day rates.

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