OHT books small deficit ahead of merger with Subsea 7

Wind carrier OHT saw another bottom line deficit in the second quarter, albeit somewhat smaller than in the beginning of the year. The carrier is expected to finalize merger with Subsea 7 soon.

Topchef Torgeir Ramstad. | Photo: OHT

Norwegian wind carrier OHT, which has investor Arn Blystad's Songa Corp as the majority owner, posted a deficit on the bottom line in the second quarter shortly before its merger with Subsea 7's renewables unit, which is expected to materialize very soon.

The carrier, which has a number of large wind installation vessels in the pipeline, reports of revenue growth of USD 6.1 million to USD 17.7 million from the first to the second quarter of the year. The operating result (EBITDA) showed figures turning from red to black, for a profit of USD 3.9 million against a deficit of USD 116,000 in the first quarter.

Revenue growth wasn't sufficient to ensure black figures on the bottom line for OHT, which booked a deficit before taxes of USD 147,000, up from a deficit of USD 4.3 million in the beginning of the year.

In comparison, OHT delivered profit of USD 6.5 million in the same period last year.

In July, OHT announced it would merge Subsea 7's renewables unit to pursue the growing market for the installation of offshore wind turbines. The combined company will go under the name Seaway 7 ASA, be based in Oslo and maintain OHT's current listing on the Euronext exchange in the Norwegian capital, according to the announcement from July.

In its interim report, OHT writes that the merger, which remains subject to the customary approvals, is expected to be effective from October 1.

"The company plans to call for an extraordinary general meeting in September to approve the business combination with Subsea 7’s renewables business unit," writes OHT in the second quarter financial report.

Following the merger, Subsea 7 will own 72 percent of the merged company, while OHT's shareholders will own 28 percent.

English Edit: Christoffer Østergaard

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