FAIRSTAR releases first Half Year Financials and fleet update
July 22, 2010
Fairstar Heavy Transport NV (FAIR) announced a decline in top line revenue as well as earnings for the first six months of 2010. Time Charter Revenues of USD 15.9 million realised EBITDA of USD 8.9 million for the Half Year. The company’s financial position strengthened considerably in both the First and Second Quarters. Fairstar has reduced Net Interest Bearing Debt by USD 35.4 million. Equity has increased by the amount of USD 44 million.

“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 USD 40 thousand a day. 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 off-shore 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.” stated Fairstar CEO Philip Adkins, who added: “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.”

 Directors Report HY 2010