Farstad Shipping increased its profit during the first quarter of the year.
Farstad Shipping posted an operating income of NOK 495.6 million for the first quarter 2017, compared to NOK 827.2 million for the same period in 2016. According to the company, the reduced operating income was a result of the challenging market situation.
The operating costs for the period were NOK 821.3 million versus NOK 569.6 million in the prior-year first quarter.
Profit after taxes was NOK 1.1 billion ($130.5 million) following a one-off accounting effect related to the financial restructuring of the company whereby NOK 1.74 billion has been recognized as financial income. This is an increase compared to NOK 94.2 million profit in the first quarter 2016.
During the quarter, the company had 14 vessels in lay-up, fully or partly.
The contract coverage of the Farstad fleet is approx. 44% for the remaining part of 2017, 39% excluding options, and approx. 36% for 2018, 20% excl. options. Total backlog exclusive options is approx. NOK 3.3 billion.