Fred. Olsen loses several contracts

Fred. OlsenFred. Olsen

The rig company Fred. Olsen Energy has billions of NOK in debt, is losing increasing numbers of contracts and could stand with only one rig at work next year.

Three of the rigs are already without work, and several will run of contract in the coming months, writes Dagens Næringsliv. “Bolette Dolphin” will be the only rig that is still under contract from February next year.

– Should the current weak rig market continue, it is clear that it looks very, very tough for the company, says analyst Vidar Lyngvær from Sparebanken1 Markets to newspaper Finansavisen.
According to the newspaper the company has a debt of $ 1.1 billion and an order book of 650 million. The next 12 months are due $ 191 million in debt.

Fred. Olsen Energy’s CEO Hjalmar Krogseth Moe think the market will recover.
– We think there will be more contract opportunities, especially in the UK, in 2017, he says to newspaper Dagens Næringsliv.


Source: NTB scanpix / Norway Today