Kristian Siem pulls out of rescue efforts for Farstad

Offshore carrier Farstad Shipping, fraught with problems, had partnered with investor Kristian Siem to come up with a financial rescue plan for the carrier. However, these efforts have now proven unsuccessful and the partnership between the two companies has been discontinued.

For months, major Norwegian investor Kristian Siem has, via his company Siem Oil Service Invest (SOSI), tried to settle a financial solution with the management of crisis-stricken offshore carrier Farstad Shipping.

These efforts were fruitless, and Farstad Shipping informs Thursday in a statement to the Oslo Stock Exchange that the partnership between the two companies has been discontinued.

"Therefore, the term sheet between Farstad and SOSI has terminated, and Farstad will pursue other alternatives for its financial restructuring in continued cooperation with its key financial creditors," writes Farstad in the statement.

The announcement comes just one week after the carrier stated that a deal for a restructuring was almost finalized with Kristian Siem and SOSI.

The terminated collaboration between Farstad Shipping and Kristian Siem will not affect the deal which Farstad has in place with creditors for deferrals on debt payments until Jan. 31 this year.

Crisis quarter

The low oil price and consequential weak employment for offshore carriers is what sent Farstad Shipping and the company's 55 vessels spiraling into a financial crisis.

The latest financial report from Farstad Shipping, for Q3 2016, showed a negative operating result of NOK 270.3 million (USD 31.5 million), a setback from the positive NOK 73.6 million in the third quarter 2015.

In relation to the interim report, Farstad Shipping stated that the company does not believe in an improved offshore market anytime soon.

"The North Sea market for AHTS and PSV tonnage has further deteriorated during 3Q 2016, and is expected to reach a lowpoint over the winter period. This looks to be in parallel with the international market condition overall. The number of vessels in layup worldwide is rising, but has not managed to even maintain market balance," Farstad wrote about the future after the third quarter.

Farstad Shipping gets a breather throughout January 2017

Farstad's creditors agree to suspension of payments

Farstad emerges from crisis quarter with deficit

Frontpage right now

CEO transformed new player in marine insurance

Insurance group Neon, which has hired numerous Lavaretus employees for a new Danish office, was struggling for survival just a few years ago. A strategic overhaul has meant that the company is now launching a charge into the marine insurance market with offices in Copenhagen and Genova.

Deputy state prosecutor describes case against Monjasa as "unusual"

The Danish Attorney General's Office for financial crimes (SØIK) could have commissioned an independent assessment of a crucial fuel report in the case against Monjasa and Jan Jacobsen, both cleared this Monday, the deputy state prosecutor tells ShippingWatch, describing the case as "unusual".

BW Offshore scales back new investments

BW Group's offshore carrier BW Offshore maintained its hard-won profit on the bottom line in the third quarter, but the market remains strained going forward, says the company in financial report.

Latest Offshore

Related articles

Latest news


See all

See all