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FARSTAD SHIPPING ASA
BUSINESS REVIEW
2014
Farstad Shipping’s reporting for 2014 consists of two publications;
“Business Review” and “Annual Report”. The Annual Report is available in Norwegian.
This is the “Business Review”.
FARSTAD SHIPPING ASA
FARSTAD SHIPPING ASA
BUSINESS REVIEW
ANNUAL REPORT
2014
2014
CONTENT
1
THIS IS FARSTAD SHIPPING
4
A Word from the CEO
52
Green vessels painted red
6
Key Figures
54
The Farstad Fleet
8
Global Summary
56
Uncompromising Vessels for Deep Waters
4
THE FARSTAD FLEET
12
Important Events
14
Values
15
Vision & Business Concept
16
Board of Directors
60
A leading player
18
Corporate Management
62
The Market in General
20
The Story
66
The Asian Pacific Market
22
Company Structure
68
The Brazilian Market
70
The North-West European Market
2
PEOPLE, ENVIRONMENT
& SOCIETY
5
6
THE MARKET FOR
OFFSHORE SUPPLY VESSELS
FINANCIAL INFORMATION
26
Safety does not happen by accident
74
Analytical Information
28
Our Employees
78
Financial Covenants
34
Environment
80
Key Figures
37
Safety
7
FLEET OVERVIEW
CORPORATE RESPONSIBILITY
84
AHTS Fleet– Contract Overview
42
Social Responsibility brings hopes and jobs
88
PSV Fleet– Contract Overview
44
Governing Documents
91
SUBSEA Fleet– Contract Overview
46
Policies
47
Processes and Procedures
92
Glossary
48
Corporate Social Resonsibility
3
FINANCIAL CALENDAR 2015 (Subject to change)
12 May
First Quarter Report
12 May
Annual General Meeting
27 May
Dividends to Shareholders
20 Aug. Second Quarter Report
10 Nov. Third Quarter Report
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A WORD FROM THE CEO
The market for Farstad Shipping's services has changed considerably throughout 2014. The figures presented in
the annual report provide a clear picture of a challenging market in a period of declining activity and corresponding
decrease in earnings.
The reports submitted for 2014 can in general, be sorted
into three categories; HSEQ results, financial figures and
organisational development.
During the year we have succeeded in improving our
HSEQ results. The total injury rate is reduced, and we
register that our employees are committed to the effort
of further improving the safety and quality of our operations. This is both pleasing and necessary if we are to
reach our goal of an injury-free working environment.
The profit for 2014 is not satisfactory. As our quarterly
reports show, the market is developing in a way in which
we have to expect lower activity and a considerable pressure on the rates for a long time ahead. This challenges
our ability to maintain a sustainable development of the
company. In Brazil we are achieving relatively good profit,
due to solid operations and good handling of the challenges in this market. In North-West Europe the profit is
negatively influenced by a weak market and poor rates,
reinforced by a considerable spot exposure. Also in the
Asian Pacific region (APAC) we notice the consequence of
increasing competition and a strong cost pressure from
the oil companies.
We are well equipped with a robust and competent
organisation offshore as well as onshore. During 2014
we have strengthened the Executive Management Team
in order to achieve more rational and efficient operations,
as well as improving our competitiveness in a challenging
market. The Executive Management Team is extended
by two new positions responsible for operations and
human resources.
In order to improve efficiency and reduce costs of our
operations in the North-West Europe region, the management of this region has been reorganised. As a result it
was decided to cease operations from the office in
Aberdeen and to transfer ownership and operations from
our company in Scotland to the office in Aalesund. As a
consequence of the market conditions in the North Sea
by the year end, we also decided to temporary lay up
three newer AHTS and one older PSV. The Company has
also initiated other efficiency and cost saving activities.
During 2014 we have sold one older vessel, Far Grimshader (PSV, UT 706L, 1983) as well as taken delivery of
four vessels, of which two were AHTS: Far Sigma and Far
Sirius, and two PSV: Far Sun and Far Sygna. By the end of
the year the fleet consisted of 62 sailing vessels and
three subsea vessels under construction. Two of these
are to be delivered during the first half of 2015, and one
towards the end of 2016.
The activity within the marine offshore segment, of which
Farstad Shipping is a significant participant, has seen a
strong growth over the past 5 – 10 years. The number of
vessels active in this market has more than doubled during this period, increasing the completion in the market in
a global perspective. Our activity takes place mainly in
North-West Europe, Brazil and APAC, and is directly
affected by the increasing competition.
The oil companies' focus on cost savings was already
announced at the beginning of 2014, and after the sharp
drop in oil prices in the autumn of 2014, they adopted
more drastic cost cuts and reductions in activity. In Brazil
we are experiencing a deterioration of the market due to
the difficulties that Petrobras, the main player in this
market, is facing. This has resulted in a reduction of
contracted offshore vessels in Brazil.
In addition to purely financial factors the market is also
negatively affected by international political issues,
causing reduced activity for the offshore fleet, especially
in the Northern Areas. With these factors, as well as the
increasing surplus of tonnage, we are facing a period
characterized by a weak market.
However, as Farstad Shipping has a competent and
robust organisation, an efficient and modern fleet as well
as good relations with our clients, we are well dressed
for a challenging market. Therefore, during a time with a
weak market and increasing competition we will be offering more competitive services to our clients in accordance
with their needs.
KARL -JOHAN BAKKEN
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5
KEY FIGURES
FARSTAD SHIPPING 2014
SORTED BY
TYPE OF VESSELS
OPERATING INCOME
4,369
AHTS
58%
PSV
36 %
NOK MILL.
SUBSEA
6%
19,395
6,625
TOTAL ASSETS
NOK MILL.
TOTAL EQUITY
NOK MILL.
SECOND QUARTER (NOK mill.)
FIRST QUARTER (NOK mill.)
1050.6
1009.7
Operating income*
Operating income*
EBIT
EBIT
Profit after tax
192.7
*incl. gain on sale
6
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79.5
Profit after tax
178.6
46.7
SORTED BY
REGION
OPERATING INCOME
4,369
ASIA
PACIFIC
44 %
BRAZIL
32 %
NOK MILL.
NORTH-WEST
EUROPE
21%
OTHER
3%
0.73
2.32
LOST TIME INJURY FREQUENCY (LTIF)
TOTAL RECORDABLE CASE FREQUENCY (TRCF)
Lost Time Injury Frequency per
Total Recordable Case Frequency per
one million hours worked
one million hours worked
THIRD QUARTER (NOK mill.)
FOURTH QUARTER (NOK mill.)
1211.9
Operating income*
EBIT
Profit after tax
1111.7
Operating income*
EBIT
311.2
91.2
Profit after tax
102.8
-225.8
*incl. gain on sale
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FARSTAD SHIPPING
GLOBAL SUMMARY
16
4
1
17
23
NUMBER OF VESSELS SORTED BY REGION
31
26
AHTS
4
PSV
SUBSEA + 3 NEWBUILDS
2,200
EMPLOYEES IN TOTAL
76
GENDER DISTRIBUTION
OFFSHORE
1884
OPERATING INCOME
106
ONSHORE
134
4,369 NOK MILL.
Other regions: 3% of operating income (147 of 4,369 NOK Mill.)
8
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ASIA PACIFIC
SUMMARY
SINGAPORE
PERTH
MELBOURNE
16
AHTS
11
1
PSV
SUBSEA NEWBUILD
878
EMPLOYEES OF TOTAL 2,200
9
GENDER DISTRIBUTION
44 OFFSHORE
774
38
OF OPERATING INCOME (1,902 OF 4,369 NOK MILL.)
ONSHORE
57
BRAZIL
SUMMARY
MACAÉ
RIO DE JANEIRO
10
3
AHTS
4
PSV
SUBSEA
560
EMPLOYEES OF TOTAL 2,200
27
GENDER DISTRIBUTION
32 OFFSHORE
470
OF OPERATING INCOME (1,408 OF 4,369 NOK MILL.)
30
ONSHORE
33
NORTH-WEST EUROPE
SUMMARY
AALESUND
5
AHTS
11
2
PSV
SUBSEA NEWBUILDS
762
EMPLOYEES OF TOTAL 2,200
GENDER DISTRIBUTION
21 40
OFFSHORE
640
38
ONSHORE
44
OF OPERATING INCOME (1,042 OF 4,369 NOK MILL.)
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IMPORTANT EVENTS
FARSTAD SHIPPING 2014
FIRST QUARTER
1,405
SECOND QUARTER
NOK
MILL
New contracts in East-Africa, Brazil, Australia and
North-West Europe worth NOK 1,405 million were
announced.
SALE
PSV
Far Grimshader
was sold.
NEWBUILD
APRIL: AHTS Far Sirius was delivered to Farstad
Supply AS from Vard Langsten, Norway. The vessel
traded the spot market in the North Sea before
departing for a long term charter in Austalia in August.
525
NOK
MILL
New contracts in North-West Europe, Brazil and
Australia worth NOK 525 million were announced.
NEWBUILD
FEBRUARY: AHTS Far Sigma was delivered to Farstad
Supply AS from Vard Langsten, Norway. The vessel has
been trading the spot market in the North Sea during
2014.
ANNUAL GENERAL MEETING
The Annual General Meeting was held on 14 May, and
the Board's proposal for a dividend of NOK 3.00 was
approved.
NEW HEAD OFFICE
The construction of our new head office in Aalesund has
started, and the relocation is scheduled to take place
during the first quarter of 2016.
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THIRD QUARTER
FOURTH QUARTER
NEWBUILDS
530
JULY: PSV Far Sun was delivered to Farstad Supply
AS from Vard Langsten, Norway. Far Sun directly
commenced a long-term charter contract for Statoil
after delivery. The firm period is 6 years, and the
contract contains 3 x 1 year options.
NOK
MILL
New contracts in Australia and Brazil worth NOK 530
million were announced.
AUGUST: PSV Far Sygna was delivered to Farstad
Supply AS from Vard Vung Tau, Vietnam. After arrival
in the North Sea, the vessel commenced her long-term
commitment to Statoil for a firm period of 6 years with
an additional 3 x 1 year options.
2,125
NOK
MILL
New contracts in Australia, North-West Europe and
Brazil worth NOK 2,125 million were announced.
FRAMEWORK AGREEMENT
Farstad Shipping ASA has been awarded a 5 year
framework agreement by Technip Norge AS for
delivery of ROV support operations, light construction
work, IMR and other subsea related activities.
Farstad Shipping ASA has entered into an agreement
with Vard Holding Ltd. to build one subsea/IMR vessel
(Inspection, Maintenance and Repair) for delivery
during 4th quarter 2016.
RESCUING FISHERMEN
Our vessel Far Sirius managed to rescue the entire
crew of seven people from a small fishing boat sinking in
the Java Sea. Using the mob boat, the fishermen were
rescued after floating on the shipwreck for hours.
FARSTAD MARINE AS
Outside Rio de Janeiro, Far Swift rescued two
fishermen floating on some fishing gear as their vessel
was sinking. At approximately the same time, Far
Sagaris was involved in a rescue operation offshore
Brazil. Both the fishermen and their boat were rescued.
As a consequence of the decision to cease operations
from the Aberdeen office, the shipowning company
Farstad Marine AS was established. Farstad Marine
AS bought 9 out of 10 vessels from Farstad Shipping
Ltd. in Aberdeen. One vessel was transferred to
Farstad Construction AS.
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VALUES
Our Values express the attitudes and the culture Farstad Shipping’s employees stand for. The Values give clear
guidelines for the priorities which form the basis for the further development of the Company. As a leading supply
shipping ­company we depend on having dedicated, knowledgeable and competent people to run our business safely
and ­efficiently. A ­modern and competitive fleet is also a prerequisite for this.
Safety conscious
Inclusive
Our general attitudes, our vigilance and our focus on
safety secure the safe execution of operations, free of
injury or damage. Know-how, proficiency, positive
attitudes and well worked-out routines ensure that
the job is properly carried out for our clients and with
regard to the environment. Farstad Shipping is, and
will continue to be, a long-term and responsible
employer and operator.
We are initiators and a driving force behind the development of our industry through cooperation with
customers, suppliers and educational establishments. We nurture a sense of belonging and strength
by making the most of every employee’s potential
through development and education, by the sharing of
know­ledge and expertise and by taking into account
individual needs.
Value productive
Visible and transparent
We generate values for our owners, collaborating
partners, society and surroundings. We are an openminded and ambitious driving force towards constructive changes. By systematically focusing on individual
welfare, personal development and safety through
orderly conditions, a value-added environment is
provided for our employees.
Our Values imply a unified and consistent management style and a market adjustable, transparent and
interactive organisation. We stand by our decisions
and endeavour to be clear and recognisable. We care
about our neighbourhoods and wish to extend positive
support to our local communities. We aim to spread
and live up to our Values in our every­day work.
Reliable
We are reliable, true and vigorously efficient and loyal
regarding decisions that have been made. Our attitudes are characterised by integrity; we step up and
take charge and also carry out whatever is necessary
to fulfill given promises.
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VISION & BUSINESS CONCEPT
Farstad Shipping is one of the leading supply shipping companies within our defined segment of large and more advanced offshore supply vessels. We are a value driven company with focus on safety, quality and efficiency in our services.
CORPOR ATE VISION
Better by Far
Business concept
We intend to develop the Company further by
abiding our Values in order to maintain a leading,
competitive position in the markets where we are
present.
We shall be a leading ­provider of specialized
offshore tonnage to the international oil and gas
industry.
®
MOTIVATION & OBJECTIVES
0
INJURIES TO PEOPLE
OBJECTIVES
0
HARM TO THE ENVIRONMENT
0
LOSS OR DAMAGE TO EQUIPMENT
Our overall goal is to have zero injuries to people, zero harm to the environment and zero loss
or damage to equipment.
The Company’s growth shall be based on good profitability and financial strength. Our goal is
to provide our shareholders with a competitive return.
FOCUS
We focus on large, advanced vessels in the anchor handling, supply and subsea segments.
We focus on health, safety, environment and quality. This provides the foundation for all our
activities and is vital with regard to competitiveness. We focus on stimulating and further
developing the competence, knowledge and awareness of our employees.
LONG-TERM
PERSPECTIVE
We are an industrial operator with a long-term perspective on our activities. Our services shall
contribute to a sustainable development for our customers and their businesses, as well as
form a basis for a long-term value creation which benefits shareholders, employees and
society in general. We have a long-term chartering strategy.
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BOARD OF DIRECTORS
Farstad Shipping’s Board of Directors consists of seven members comprising three women and four men. The Board’s
statutory responsibilities include the overall management and ­control of the Company. None of the board members
have leading positions in the Company.
SVERRE A. FARSTAD (b. 1952)
ASTRID KOPPERNÆS (b. 1957)
PER NORVALD SPERRE (b. 1946)
CHAIRMAN
DIRECTOR
DEPUTY CHAIRMAN
Board member since 1988.
Board member since 2007.
Board member since 1990. Admitted
Business Degree Heriot-Watt
Petroleum Engineering Degree
to the Supreme Court. Law Degree
University, Edinburgh, Scotland.
(Siv. Ing) from NTH, M.Sc. from
from Oslo, 1972. Experience from
Chairman of the Board of Tyrholm
Stanford University and executive
banking etc. Established own law firm
& Farstad AS. Various board
MBA from Heriot-Watt University,
in 1977. Partner in the law firm
appointments and other positions
Scotland. Varied background as a
Schjødt DA since November 2000.
in banking, insurance and the
petroleum engineer and manager
Holds a number of board appoint-
Norwegian Shipowners
within the oil industry in Norway
ments in industry and shipping.
­Association.
and UK since 1984. Consultant
for operators and service companies in Aberdeen, Scotland. Board
member in Koppernæs AS and
Advantec AS.
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JANNE-GRETHE
STRAND AASNÆS (b. 1963)
MADS ANDERSEN (b. 1965)
GRO BAKSTAD (b. 1966)
LEIF-ARNE LANGØY (b. 1956)
DIRECTOR
DIRECTOR
DIRECTOR
Board member since 2005. MBA
Board member since 2013. M.
Board member since 2005.
Board member since 2013.
– University of San Francisco,
Sc. from Glasgow University and
Business Degree, NHH, Bergen
Business Degree, NHH, Bergen
and Authorised Financial Analyst.
associate degree in Bus. Adm.
and State Authorized Accountant.
and former CEO of Aker. He
Varied background as a financial
from the Norwegian School of
Varied background from account-
currently holds a number of
analyst and portfolio manager
Management. Has 26 years of
ing, consulting, finance and
directorships, including as
in the investment management
experience from the oil and gas
offshore industry. Been part of the
Chairman in DNV GL AS,
business. Managing Director
industry, and was previously
corporate management in Posten
Kværner and Sparebanken
of Strand Havfiske AS since
Executive Vice President in Aker
Norge since 2006, first as CFO,
Møre.
2000. Board Member in FHF
Solutions ASA. Andersen is
currently as Executive Vice
(Fiskeri-og Havbruksnæringens
currently Division President in
President Division Mail. Board
Forskningsfond) since 2015.
OneSubsea, a leading supplier of
member in Veidekke ASA.
DIRECTOR
subsea process- and production
equipment, owned by Cameron
and Schlumberger.
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CORPORATE MANAGEMENT
The Corporate Management Team consists of industry leaders who each has more than 20 years
experience in the shipping business, and include the roles of CEO, CFO, COO and CHRO.
The Executitive Vice Presidents responible for the Company's regional
operations together with the Corporate Management Team comprise
the Executive Management of Farstad Shipping.
KARL-JOHAN BAKKEN (b. 1958)
CHIEF EXECUTIVE OFFICER - CEO
Karl-Johan Bakken entered the position as CEO 1 January
2006. He was earlier Director for Market and Operations, a
position he entered in July 1999. He joined Farstad Shipping
with 15 years international experience from the ship design
and ship building industry, latest as Vice President of Ulstein
Ship Technology and Director of Ulstein Trading Ltd. AS. He
holds a M.Sc. in Naval Architecture from the Norwegian
University of Technology in Trondheim (1984).
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TORSTEIN L. STAVSENG (b. 1953)
SVEIN HELGE GULDTEIG (b. 1960)
TERJE LØVOLL (b. 1968)
CHIEF FINANCIAL OFFICER - CFO
CHIEF OPERATING OFFICER - COO
CHIEF HR OFFICER - CHRO
Torstein L. Stavseng has held the
position and been part of the Management team since 1991. He came to
Farstad Shipping in 1988, and has a
Master’s degree from Norwegian
School of Economics and Business
Administration (NHH) in Bergen.
Before he joined Farstad Shipping he
had six years experience within the
banking industry.
Svein Helge Guldteig started as COO
in January 2015. He has more than
20 years of experience from managerial positions in various shipping
companies like Wilh. Wilhelmsen,
Torvald Klaveness and Norwegian Car
Carriers as most recent. He holds a
M.Sc degree in Marine Machinery
from Norges Tekniske Hogskole, NTH
(1993) and an MBA from BI/ESCP in
Paris (2005). He has 6 years of sea
going experience with a degree from
Trondheim Maritime Academy (1987,
Engineer Officer Class I).
Terje Løvoll was appointed in January
2015, and he brings with him 25 years
of experience in the maritime industry.
His last positions were Managing
Director at GMC Yard AS and Director
Business Development at V. Group Ltd.
He holds an MBA in Organizational
Development and Change Management from Harvard University and the
University of Bergen.
WAYNE AITKEN
FELIPE RODRIGUES ALBES MEIRA (b. 1969)
(b. 1964)
EXECUTIVE VICE PRESIDENT APAC
EXECUTIVE VICE PRESIDENT AMERICAS
- EVP-APAC
- EVP-A
Wayne Aitken entered the position
of EVP-APAC 1 October 2014.
He was earlier Managing Director
Farstad Shipping (Indian Pacific), a
position he entered August 2013.
He has worked in the maritime
industry for more than 20 years, in
a series of executive roles. Prior to
joining Farstad Shipping he held the
role as Executive General Manager
Trading - Rio Tinto Marine. He holds
qualifications in Economics and
Masters of International business.
Felipe Meira entered the position as
EVP-A 1 October 2014. He was earlier
Managing Director for Brazil Region, a
position he entered in February 2008.
He has been involved with Farstad
Shipping Operations in Brazil since
1994, and has been working directly in
the company since 1999, when Farstad
opened its own office in Brazil. He holds
a Bachelor diploma in Economics and
also a Post-Graduation in Business
Administration from FGV, one of the
best educational institutions in Brazil.
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THE STORY
FARSTAD SHIPPING 1956 – 2014
1956 – 1980
1980 – 1990
1956
THE
NORTH
SEA
Sverre Farstad & Co. was established in 1956 as a
traditional shipping company, and it contracted its first
vessel, M/S Farland, an ore vessel for delivery in 1959.
1986
1989
In 1986 we bought the major part of Wilhelmsen's
offshore fleet, a total of eight vessels. In 1989 Farstad
Shipping signed an agreement to purchase the fleet
of Seaforth Maritime in Aberdeen, consisting of eight
vessels. After these two acquisitions, Farstad Shipping
was the largest offshore shipping company in the North
Sea with 26 vessels.
PUBLIC LISTED 1988
Farstad Shipping was publicly listed in 1988 under the
ticker code FAR. The publicly listed company Herness
Shipping was acquired and established as a shipping
supply company on the Oslo Stock Exchange. The name
was changed to Far Shipping.
SHAREPRICE DEVELOPMENT FAR 1988 - 2014
NOK
200
150
TRANSITION TO OFFSHORE
100
50
In the early 1970s the company sold out of the
traditional shipping segment and was left with funds
which made it possible to invest in offshore service
vessels for the new and growing market in the North
Sea. In 1973 the company contracted its first supply
vessel, an anchor handling vessel of the type UT 704.
0
1988
1992
1995
2000
2003
2006
2008
2011
2014
1989 ABERDEEN
As a consequence of the expansion in the British sector,
Farstad Shipping established a separate company in
1989 in Aberdeen. Farstad Shipping Ltd. was estab­
lished as an operations and marketing company for the
200 company's vessels on the British shelf. In 2002 Farstad
150 Shipping Ltd. became a ship owning company adapted
to the new British Tonnage Tax scheme. In 2014 it was
100
decided to cease operations from the office due to a
50 restructuring of the activity in Nort-West Europe.
0
20
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FAR
1990 – 2000
2000 - 2014
FULLY INTEGRATED SHIPPING COMPANY
2006 SINGAPORE
The company became a fully integrated shipping company
in 1993 by gathering all functions; ship-owner, operations
and marketing in the same group under the name Farstad
Shipping ASA.
IOS 1997
AUSTRALIA
P/R International Offshore Services ANS
(IOS) was established in 1997 as a joint
venture between Farstad Shipping and
P&O Australia. This establishment gave
Farstad Shipping access to Australian
and South-East Asian waters. In 2003
Farstad Shipping aquired P&O's share in
the IOS fleet, and at the same time the P&O
operating companies in Melbourne and Perth were also
acquired.
BOS 1999
BRAZIL OFFSHORE SERVICES
In order to develop the focus on supply vessels in Brazil,
Brazil Offshore Services (BOS) was established in Macaé,
Brazil in 1999, together with the Brazilian company
Petroserv S.A. The company was responsible for
operations, local staffing and marketing of the Farstad
fleet in Brazil. During the period 2005 to 2007, the
company took delivery of three AHTS built at Brazilian
shipyards. In 2011 the company was acquired 100%
and its name changed to Farstad Shipping S.A. The
Farstad Shipping S.A. office in Rio de Janeiro opened in
2012.
Farstad Shipping Pte. Ltd. in Singapore was established
as a ship owning company in 2006.
OFFSHORE
SIMULATION
CENTRE
The centre in Perth,
Australia opened in
December 2011 and is
important to Farstad
Shipping's focus on
developing and training
our sailors.
A GREEN VESSEL PAINTED RED
In 2009 Far Samson received the Heyerdahl Environmental Award, and was also awarded «Support Vessel
of the Year». In 2012 Far Solitaire was awarded
«Support Vessel of the Year». This vessel was also an
important reason why the company received the award
«Innovator of the Year» in the same year.
INVESTING INTO SUBSEA
From being one of the leading offshore supply vessel
companies in the world, Farstad Shipping decided
to further invest into the Subsea vessel market. This
strategy is made visible through the company’s latest
newbuilding programme. Three subsea vessels will be
delivered in 2015 and 2016.
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COMPANY STRUCTURE
FARSTAD SHIPPING ASA
Aalesund, Norway
84 employees / 0 vessels
100%
FARSTAD SHIPPING
INDIAN PACIFIC PTY. LTD.
FARSTAD SHIPPING PTE. LTD.
FARSTAD SHIPPING S.A.
FARSTAD SHIPPING LTD.
13 employees / 8 vessels
560 employees / 3 vessels
4 employees / 0 vessels
Singapore
Melbourne, Perth, Australia
786 employees / 0 vessels
100%
100%
FARSTAD SHIPPING OFFSHORE
SIMULATION CENTRE PTY. LTD.
FARSTAD SHIPPING
CREWING SERVICES PTE. LTD.
9 employees / 0 vessels
262 employees / 0 vessels
Perth, Australia
CORPORATE STRUCTURE
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Aberdeen, UK
Singapore
The Company’s head office is located in Aalesund and the
major part of the Groups Fleet is owned by Norwegian
entities. In addition to Norway, the Group has ship owning
companies in Singapore and Brazil. The Company is opera­
ting vessels out of offices in Aalesund, Melbourne, Perth,
Singapore, Macaé and Rio de Janeiro. Also part of the
Group is our Singapore based crewing service company
and an offshore simulation centre in Perth, Australia.
22
Macaé - Rio, Brazil
ASIA PACIFIC
The subsidiary in Australia, with offices in Melbourne and
Perth, has operational, commercial and crewing responsibility in this region. The company in Singapore owns 8
­vessels and operates other Farstad vessels located in the
region. It also has an important function during docking of
our vessels in Singapore. As an integral part of the Group,
the Simulator Centre in Perth plays a key role in building
staff competencies and total team performance and is continuously developing its s
­ ervice offerings to enhance this
support.
FARSTAD SHIPPING AALESUND AS
FARSTAD OFFSHORE AS
FARSTAD CONSTRUCTION AS
FARSTAD MARINE AS
FARSTAD SUPPLY AS
482 employees / 0 vessels
0 employees / 0 vessels
0 employees / 2 vessels
0 employees / 9 vessels
0 employees / 36 vessels
Aalesund, Norway
Aalesund, Norway
Aalesund, Norway
Aalesund, Norway
Aalesund, Norway
3 newbuilds
50%
100%
P/R INTERNATIONAL
OFFSHORE SERVICES ANS
FARSTAD INTERNATIONAL AS
Aalesund, Norway
Aalesund, Norway
0 employees / 0 vessels
0 employees / 3 vessels
50%
BRAZIL
The subsidiary in Brazil has the "Brazilian Shipping
Licence" and is authorized to charter vessels with foreign
flags for operation in Brazilian waters. The company owns
3 vessels and has also total or partial operational responsibility for other Farstad vessels operating in Brazilian
waters. The Brazilian sailors on board our vessels are all
employed by the Brazilian subsidiary. The company has
also employed sailors of other nationalities residing in
­Brazil.
NORTH-WEST EUROPE AND AFRICA
The management of vessels operating in North-West
Europe and Africa are carried out from the head office in
Aalesund. Manning of the vessels operated from Norway
is administered through Farstad Shipping Aalesund AS.
The head office is responsible for the vessels under construction. The former activities carried out from our
­Aberdeen office were terminated by the end of 2014 as a
consequence of the reorganization of the activities in this
region.
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23
02 | BUSINESS REVIEW 2014
PEOPLE,
ENVIRONMENT
AND SAFETY
Safety
does not happen by
accident
Farstad Shipping has a work environment where safety and security is the
­cornerstone of our corporate culture. The goal is zero injuries to people, zero harm
to environment and zero loss or damage to equipment. Having employees who take
the initiative to operate safer is a major contributory factor.
Safe workplaces. Our aim is for all Farstad Shipping
employees to come home safely to their families after
work. During offshore operations, anyone, anytime, can
stop the operation if a risk situation arises, or they must
ensure that safety and security is safeguarded. Both our
customers and our company have strict safety and
security procedures, which must be adhered to.
Both our customers and our
company have strict safety
and security procedures,
which must be adhered to,
says Chief Officer Yngve
Andresen.
Making hose handling safer. “Hose transfer to rigs is
used for products such as diesel, fresh water, dry bulk,
and many types of drilling fluids. All have different
­coloured connections, reducing the likelihood to connect
a hose for cement to a diesel coupling,” says Chief
Officer, Yngve Andresen. He was not surprised when
crew members initialized a new, and far safer, hose
­handling system.
Hoses are usually handled manually and not without
risks. The new system has retaining arms installed on
both sides of the vessel, which can be run out to clasp,
and safely take on board rig hoses. The rig’s crane
­operator leads the hoses onto the deck, where deck
crew can safely make the connection while the arms
retain the hoses keeping them secure.
“Simple and ingenious”, continues Andresen. “Now the
hoses are secured and cannot cause damage by lifting
out or sliding away in the wrong direction. The new hose
system is the result of good cooperation between
Farstad Shipping, Rolls-Royce Marine and Statoil. Hose
handling operations have undoubtedly become much
safer.”
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Safety, security and development
of employees is the basis for all our
operations.
Karl-Johan Bakken, CEO, Farstad Shipping
Demanding operations simulator training. In the early
2000's Farstad Shipping, in collaboration with RollsRoyce Marine, Marintek and Aalesund University College, took the initiative to develop a simulator centre for
training in offshore operations. The centre opened in
Aalesund in 2004. The experiences were extremely
positive, so Farstad Shipping built another simulator
centre in Perth, Australia. Completed in 2011, it was
the largest and most advanced offshore simulation
­centre for marine operations.
Investing in two advanced simulator centres reflects the
company's commitment to competence building and
training. This unique training programme is part of the
effort towards the development and empowerment of
employees.
“Security and development of employees is the basis for
all our operations. The purpose of the centres is to
­provide facilities for training personnel and the development and testing of marine operations under critical and
extreme conditions”, says Karl-Johan Bakken, CEO,
Farstad Shipping.
Farstad has a great focus on training, and
courses at the simulator centers are
excellent experiences which enable us to
understand all aspects of the operations.
Jürgen Rust, Captain Far Scimitar
Shark Jaw: At the end of the 1970s,
the company took the initiative to
developing the shark jaw. This was to
replace the old “pelican hook” which was
a dangerous way of securing the anchor
chain on deck.
Cargo Rail Crane. Far Santana was the
first anchor-handling vessel equipped
with a movable rail-mounted crane. This
crane has been further developed into
today’s driveable rail cranes with lifting
and manipulator function.
Naut OSV. On the initiative of Farstad
Shipping, DNV GL launched this class
notation for standardization of
equipment location on, and the view
from, the bridge. It contributes to
increased safety through the effects of
Color codes displaying hose transfer
heightened recognition as crews
products onboard Far Sun
transfer from ship to ship.
Cable lifter changer. In 2010, we
received, together with Rolls-Royce
Marine, Offshore Support Journal's
Innovation Award for the idea and
development of the cable lifter changer.
The main purpose of this equipment is to
make changing of the cable lifters safer
at sea.
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27
OUR EMPLOYEES
In order to maintain our goal of being one of the leading operators within our market segments, we depend on having
committed, competent and knowledgeable people to run our business safely and efficiently both onshore and offshore.
TRAINING AND DEVELOPMENT
In Farstad Shipping we focus on further development of our
employees, and we spend considerable resources on
awareness work and executive development. We emphasize that our employees comply with the competence
requirements set by authorities and customers at all times.
We work proactively with regard to developing competence
building measures ensuring that the Company is ahead of
the industry. During 2014 we have continued our effort to
standardize courses throughout the Group to ensure that
our employees have the same opportunities to do a good
job. A number of courses were held emphasising safety
(STCW and NOG), operator courses, technical courses, and
personal development courses as well as other kinds of
courses. Upgrading the certificates of the sailors in the
company represents a significant investment. This
includes, among other things, studies at maritime colleges
around the world with duration of six to twelve months.
Farstad Shipping invested a total of NOK 110 million for
training and development of our employees in 2014. The
training participation rate across our regional offices in
Asia Pacific has increased by 47% from 2013 to 2014.
Throughout the year we also have implemented competence building measures with regard to regional challenges. In the Asia Pacific region training was provided
internally to enable the successful implementation of the
Fleet Team approach. A facilitated workshop concluded
with training Fleet Team Leaders in leadership, communication and change management, with an emphasis on
teamwork and communication.
The crews on board our vessels represent many nationali-
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ties. This creates challenges in relation to both communication and cooperation on board, and organized language
courses were established on the vessels in Brazil in 2012.
In 2014 we have continued the language courses as a permanent offer on half of the Brazilian fleet. We also have
language teachers on board our vessels with multinational
crew in Brazil. The Brazilian crew learn English, while the
European crew learn Portuguese. There is also focus on
culture and cultural understanding in these courses. The
courses have resulted in better communication and better
understanding of cultural differences on board.
SIMULATOR TRAINING
Simulator training is an important part of our competence
building. Important elements of simulator training are
team training, interaction and communication between
various functions on board a vessel. In the simulator, the
crew can practice in maritime operations under critical
and extreme conditions.
Since the establishment of the Offshore Simulator Centre
(OSC) in Aalesund, Farstad Shipping has used the centre
for training of its own employees. Several of our captains
have been hired as instructors at the centre. OSC opened
in 2004 on the basis of a collaboration and joint ownership between Farstad Shipping, Rolls-Royce Marine,
Marintek and Aalesund University College.
Based on the experiences from OSC, Farstad Shipping
established its own simulator centre in Perth, Australia in
December 2011. The training programme at the centre in
Perth was developed in collaboration with OSC and
­Aalesund University College.
During 2014, 589 employees have attended courses at
the Simulation Centre in Perth lasting from two to five
days. This is a 72% increase from the 2013 participant
rate. The feedback is very positive. The courses included
dynamic positioning, anchor handling and platform supply
work. This year, strategically important courses such as
ECDIS (Electronic Chart Display Information System)
training, and Transfer Loads courses have been added to
the list of Simulator Courses. These courses are critical to
safety and capability development strategies.
Many of our employees in the APAC region have now completed more than three sessions. Our instructors and the
administration at the centre have contributed to setting a
new standard for training and competence development in
this region. Both our own employees and people with
experience from the simulator centre in Aalesund have
contributed to the development of our courses.
In January 2014 the Farstad Shipping Offshore Simulation Centre hosted the first Farstad Shipping Global Training Workshop. This workshop gathered participants from
all our regional offices, and focused on qualification standards in Farstad Shipping.
RECRUITMENT
Farstad Shipping has been, and shall continue to be, a
company which takes the responsibility for the training of
its employees both offshore and onshore. We recruit
actively, and visit schools and fairs throughout the year in
order to attract young students. More than 150 youths
are currently employed as apprentices or cadets with us.
Recruiting apprentices and cadets is an ongoing process
and an important responsibility for our company and the
maritime industry in general. Young apprentices and
cadets have their natural place amongst our crews, and
represent the company’s investment into the future where
we need committed, competent and knowledgeable
employees to run our advanced vessels and operations.
As part of our CSR policy, we have also recruited future
colleagues through some of our social projects, among
them Karanba in Brazil and our collaboration with Woodside in the Kimberley region in Australia. As of today we
have employed five people on our vessels in Brazil, where
youth from the Karanba project has been sponsored maritime courses. From our indigenous project together with
Woodside we have employed 14 people, now working on
our vessels in the APAC region.
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29
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VALUES AND VALUE WORKSHOPS
The goal for the Values Workshops is to increase our competitiveness through awareness of our Values as well as
our respect for people, environment and society.
We focus on making our Values known to our employees,
and in 2006 we started our Values Workshops within our
Values Programme. We spend significant resources on
strengthening the organisation through arranging these
workshops. Each workshop last for two days, and the participants are employees from both sailing crew and office
staff. The purpose of the Values workshops is to develop a
common understanding of the Values of Farstad Shipping,
as well as making the Values tangible in daily tasks and
challenges at work. There is emphasis on understanding
different cultures and focus on cultural differences, as well
as the individual responsibility based on the Values.
In addition to the Corporate Management and the regional
Liaison Officer, external consultants in each region participate in the Values workshops. The consultants are an
important resource for a local and professional adaption of
the programme to each region. Presence and involvement
from the management is important to improve understanding of the relationship between the company's Values, our
organisational culture and how we interact with each other
and our surroundings.
Having already been established in the North-West Europe
and Brazil region, the Values program commenced its official roll out during 2014 in the Australian region. Seven
Values workshops were completed in Melbourne, and ten
in Rio during 2014. The opportunity for sailing crew and
office staff to come together and share their thoughts,
ideas and experiences has been a welcome and appreciated experience for all who have attended this far. Parti­
cipation in Values workshops is mandatory for all our
employees.
OUR EMPLOYEES' HEALTH
Starting up in 2013 on board our vessels operating in
­Brazil, we have an ongoing nutrition project with focus on
healthy eating habits. In Brazil this project has been supported by our largest customer; Petrobras. The cooks
working on board have been trained in selecting ingre­
dients and preparing healthy dishes. We focus on
­measures to reduce wastage both with our suppliers and
on board, and hope that increased awareness of healthy
ingredients will result in less absence due to illness in the
long run. Similar projects are run in the other Farstad
regions, and have resulted in dietary improvement on the
vessels.
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31
KARI JENSEN GALLEFOSS
COOK, FAR SIGMA
INTERNAL COMMUNICATION
Farstad Shipping is emphasising development and maintenance of common information channels for the entire
group. Through this work, regularity and quality of information are ensured, as well as giving all employees access
to the same information.
32
«What’s Up…» is a monthly internal newsletter which is
distributed from the local operational offices. The newsletter contains updates on what the onshore organisation
is working with and especially in relation to vessel operations. Although this is a regional newsletter, «What's Up»
is available to all our employees across the regions, and in
both the local language and in English.
The company magazine «FarInfo» is an important infor­
mation channel. The idea behind «FarInfo» is to connect
employees and their families closer together across
regions through presenting various events and work
related happenings in the company. “FarInfo” has been
issued three to four times per year since the late 1990’s.
Based on a global survey a social and informal forum, a
closed Facebook group, has been established throughout
our whole organization, where all employees can participate and contribute to share day to day activities, ideas
and stories.
Employees and their families as well as the company's
retirees also have access to our internal website «Farstad
Community». This website is updated continuously with
stories from everyday life in Farstad Shipping. The
“Farstad Community” is available in three different versions, administrated from Norway, Brazil and Asia Pacific.
All employees have access to all information here regardless of regional affiliation.
WELFARE
The Company has developed a number of welfare offers
for both crew and office employees, to give added value
beyond the usual benefits. In order to facilitate and
develop these offers, a dedicated Liaison Officer in each
region has a strong focus on developing good communi­
cation between sailing crew and office staff. The Liaison
Officer works closely with the Human Resources depart-
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farstad shipping asa
ment to make sure we develop good social meeting points,
to create better understanding of the work situation
between sailing crew and office staff, and to make everybody feel they are an important part of the Company.
education, experience, results, and other professional criteria shall form the basis with regard to hiring, training,
wages and promotion. At the end of the year 106 out of
the Company's 240 office employees were women.
The welfare concept, which was developed at the head
office, is created in close collaboration with our employees
and their union representatives. The concept, adapted to
local conditions, is now established in all Farstad regions.
Farstad Shipping has a challenge with regard to motivating women to choose a maritime education. At the end of
the year the total number of crew employees was 1,960,
however, only 76 of these were women. The Company will
continue to recruit women to maritime related jobs. It participates in initiatives such as the Australian Maritime College’s Graduate Career programme, with an emphasis on
educating and encouraging females to pursue maritime
careers. In addition to focusing on gender equality, there
are efforts to include people from groups which are underrepresented in the labour market, including people with
disabilities.
The employees' families are an important asset for the
Company. We have developed and implemented routines
to maintain contact with the families. Through social
events, good welfare offers, and conveying information we
wish to create a feeling of belonging to the Company, as
well as knowledge of our daily activities.
GENDER EQUALITY
Farstad Shipping recognises the importance of embracing
diversity and valuing the differences in its employees. The
Board and the Management work continuously to promote
gender equality in all areas in order to create a diverse
organisation. At the end of the year the Group had 2,200
employees representing 29 nationalities.
ABSENCE DUE TO ILLNESS
Absence due to illness for employees on board our vessels
has had a negative development compared to last year. In
2014 absence due to illness was 2.93 % (2.64 % in
2013). Absence due to illness among our office employees has also had a negative development from 1.57 % in
2013 to 1.63 % in 2014.
In 2014 Farstad Shipping in Australia was awarded the
renowned Gold Stamp by the Australian Women in
Resources Alliance (AWRA). Understanding the strong
business case for greater diversity in our workforce,
Farstad Shipping in Australia started a process of formalising our diversity initiatives in 2013 when, as a company,
we were the first participant in the AWRA assessment program and received “Silver” recognition.
After taking on board the feedback and recommendations
from that initial assessment, and after a year of working on
developing formal diversity policies and procedures,
Farstad Shipping in Australia are now able to display their
Gold AWRA recognised stamp, reflecting our achievements in gender diversity and women’s workforce participation. The foundation for this result was an assessment of
our workplace policies, procedures and practices towards
best practice management of workplace (gender) diversity.
The AWRA recognition assists Farstad Shipping in building our gender diversity capability, become a preferred
employer for women and realise the advantages of a gender diverse workforce.
We are conscious of preventing gender based discrimination. The principle of equal pay for equal work applies in
wage determination. Only relevant qualifications such as
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33
ENVIRONMENT
Farstad Shipping's goal of zero injury to people, zero harm to the environment and zero loss or damage to assets and
equipment is the basis for our efforts in reducing our impact on the environment.
ENVIRONMENTAL INVESTMENTS IN NEWBUILDS
In close collaboration with designers, shipyards and
equipment suppliers we make use of the latest available
technological solutions in order to build and operate vessels with minimal risk of releasing environmentally hazardous substances into air and water. For our four newbuilds delivered in 2014, as well as our three newbuilds to
be delivered in 2015 and 2016, we have invested in environmental measures far beyond class and authority
requirements. Among these are measures to reduce fuel
consumption through the use of hybrid propulsion systems, installation of exhaust catalysts, the use of environmental friendly antifouling and Clean Design. There are
also installations for measuring and logging fuel oil consumption in various operational modes, providing overview of accurate fuel usage and identifying areas for
improvement.
ENVIRONMENTAL IMPACT FROM THE
OPERATION OF SUPPLY VESSELS
Pollutants into the sea and emissions into the air have
been considerably reduced over time as a result of con­
tinuous improvements of technical solutions, better con-
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farstad shipping asa
trol and maintenance of the equipment as well as the
choice of more environmentally friendly products. This
applies among others to topics such as anti-fouling, lubricants and detergents.
In all our vessels delivered after 2006, we have invested
considerable amounts in eco-friendly measures beyond
current rules and requirements when it comes to reduction of emissions into air. These emissions mainly consist
of CO2, NOx, and to a lesser extent, SOx. The amount of
emissions depend on various conditions related to fuel
quality as well as the vessel's operational profile, including the number of operating hours and average load on the
diesel engines. Farstad Shipping use only marine diesel
(Marine Gas Oil) with very low sulphur content which gives
neglectable emissions of SOx. On all vessels built after
2006 as well as on some older vessels, catalysts have
been installed in order to reduce the amount of NOx emissions. Experience shows that efficient use of catalysts
alone reduce NOx emissions by up to 95%.
CO2 emissions are directly related to the amount of fuel
used, and the company is focused on minimizing con-
sumption in connection with the vessels' operation profile
offshore as well as during transit and in port. New technology combined with optimal use of propulsion systems and
other heavy consumers on board may reduce CO2 emissions up to 50% compared to vessels built a few years
ago. Vessels with diesel electric or hybrid propulsion systems provide opportunities for optimal use of heavy
machinery, depending on operational requirements at the
time. Electric drive and variable speed control of propellers and other main consumers permit vessels to carry out
the required tasks with reduced fuel consumption and at
optimal load without compromising safety requirements.
Raising focus and training of crew in optimal use of the
various technical installations on board have proven to
contribute to increased environmental awareness and
reduced emissions.
continued in 2014. Through the project we receive a lot of
valuable data which help us develop a better management
tool both in order to reduce the environmental impact
from the company's activities, and contribute to better
prediction and planning of maintenance.
In addition, modification of electrical and power supply
systems on board a selection of the company's vessels
built a few years ago has been carried out. This makes it
possible to reduce the number of diesel engines running
at the time, depending on the vessel's operational mode.
Thus both diesel consumption and maintenance costs are
lowered due to reduced number of operating hours.
Equipment for safe and optimal utilisation of shore power
has been installed on board a number of our vessels and
newbuilds. Throughout 2014 we have continued to gain
distinction in connection with efficient utilisation of shore
power during port stays. In this context we have also contributed in various forums discussing how the ports may
offer standardized solutions for offshore supply vessels,
so that the same electrical power technology is available
in various ports.
The Company participates in several projects established
in order to minimize the offshore supply vessels' impact
on the environment. In 2012 phase one of the project
EEOP (Energy Efficient Offshore Partners) organised by
DNV GL was implemented. Phase two was implemented
in 2013 with the same participants in addition to a selection of oil companies. The project was completed in 2014.
The project's overall goal is «the Norwegian-controlled
offshore fleet shall be the most environmentally friendly
and cost effective in the world and thus preferred because
it consciously operates with lower consumption of fossil
oils». A pilot project for one of our PSV vessels’ in cooperation with a charterer and DNV-GL, were analysing the
findings from phase one by implementing a selection of
measures to the operation of the vessel, documented significant savings in fuel usage.
In late 2014, an agreement for carrying out an “Optimal
Trim”-pilot in cooperation with DNV-GL and another of our
charterers was signed. Trim and optimal use of the vessels are of great significance when it comes to fuel usage,
and we have great expectations that the pilot will provide
us with valuable insight into how to optimise the way our
vessels are used in daily operations.
The HeMoS project (Health Monitoring System), which
includes condition monitoring of equipment on board one
of our PSV vessels and one of our AHTS vessel, has been
The Energy Monitoring System (EM1) project has been
continued throughout the year. Equipment for identifying
and measuring the vessels' operational profile and energy
consumption has been installed on board a number of vessels and newbuilds. EM1 enables us to analyse trends for
each vessel, as well as compare the various vessels' efficiency, consumption and emissions. Historical data accumulated by EM1 will be utilized for further analysis with
the aim to identify areas for improvement in terms of
reduced fuel oil usage and thus emission.
BALLAST WATER
Farstad Shipping is continuing its focus on the environmental consequences of transfer of vessels from one geographical area to another with regard to the presence of
marine organisms in the ballast water. Vessel-specific
plans have been created for handling ballast water in
accordance with international regulations. The company's
vessels operate mainly within the regions North-West
Europe, Africa, Brazil and Asia Pacific but are from time to
time moved between the regions and also within these
regions.
The Company is planning to retrofit all treatment systems
for ballast water in accordance with upcoming international regulations, which have yet to come into force. Over
the recent years all newbuilds have treatment systems
installed for ballast water.
ENVIRONMENT REGISTRATION
AND WASTE HANDLING
Throughout 2014, the internal project «Environmental
Footprint» has been carried out. The project has been
vital to control, measure and visualize the environmental
impact of our operations. Previously described projects
will also be valuable tools in this context.
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35
FO (Tonnes)
The reporting tool Vessel Manager has been implemented
on all our vessels, with options for accurate registration
and control of focus areas such as fuel consumption,
waste handling, and thus also environmental impact. All
waste and garbage on board the vessels are sorted in
accordance with international guidelines and reported
monthly. Septic waste and grey water are handled, treated
and deposited in accordance with current regulations.
The Company’s environmental accounts are, together
with the SEEMP, the guidance for future improvements.
Previous years' efforts to improve air conditioning and air
cooling systems on board our vessels with regard to
reducing the emissions of greenhouse gases have continued. When upgrading vessels in operation, as well as
installations on board newbuilds, we have applied refrigFO (Tonnes)
20000
CO
20000
erants
which are environmentally friendly, as well as using
sea water for cooling where possible. As a result of these
measures we see a positive development in the reduction
15000
of greenhouse
gas emissions.
6000
5000
4000
USE OF CHEMICALS ON BOARD
10000 for standardizing use of chemicals on board was
A project
started in 2014. The overall aim is to reduce environ­
mental impact and reduce the number of chemicals used
on board.
5000 The Company makes best efforts to use environmentally friendly chemicals to the largest possible
extent. We also focus on increase knowledge among crew
and improve
the understanding of risk and hazard in use of
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
various chemicals through control and safe handling of
the chemicals.
PSV
CO2 Emission (Tonnes)
AHTS
3000
2000
1000
SUBSEA
60000
CONSUMPTION AND EMISSIONS
AHTS
50000
PSV
SUBSEA
15000
40000
SOX
FO (Tonnes)
10000
5000
2000
30000
20000
Fuel oil (tonnes)
20000
1500
15000
1000
0
10000
Jan
Feb
Mar
NO
8000
60000
SOx Emission (kg)
10000
0
Emission
(Kg)
CO2 Emission
(Tonnes)
Apr May Jun
Jul
Aug Sep
Oct
Nov Dec
7000
50000
6000
40000
5000
4000
30000
Jan
Feb
Mar
Apr May Jun
Jul
Aug Sep
Oct
Nov Dec
3000
20000
5000
PSV
0
Jan
Feb
Mar
Apr May Jun
Jul
500
SUBSEA
Aug Sep
PSV
SOX Emission
(Kg)
CO2 Emission
(Tonnes)
2000
AHTS
Oct
AHTS
Nov Dec
SUBSEA
CO2 Emission (tonnes)
Emission (Kg)
Mar
Jan Apr
Feb May
Mar Jun
Apr Jul
May Aug
Jun SepJul Oct
Aug Nov
Sep Dec
Oct
NOX Emission Cleaned
50000
2000
30000
40000
30000
20000
1500
20000
10000
1000
0
Feb
Jan
10000
Mar
Jan AprFeb May
Mar JunApr JulMay Aug
Jun SepJul Oct
Aug Nov
Sep Dec
Oct
500
EA
Feb
PSV
AHTS
SUBSEA
SUBSEA
AHTSPSV
AHTS
SUBSEA
Nov Dec
SUBSEA
0
NOX Emission Cleaned
80000
70000
60000
50000
40000
Jan Feb
30000
Mar
Apr May Jun
0
Jan Feb
Apr May
Jun asa
Jul
business review
2014Mar
- farstad
shipping
Aug Sep
Oct
Nov Dec
Jul
Aug Sep
Oct
Nov Dec
20000
PSV
10000
36
PSV
AHTS
PSV
Nov Dec
60000
40000
SOX
0
0
1000
70000
1500
500
Jan
2000
SUBSEA
NOx
Emission cleaned (kg)
80000
60000
50000
1000
0
AHTS
PSV
10000
0
Jan
Feb
Mar
Apr May Jun
AHTS
Jul
SUBSEA
Aug Sep
Oct
Nov Dec
SAFETY
Farstad Shipping's goals within health, safety and environment (HSE) are to operate without injury to people, harm to
the environment and loss or damage to assets and equipment. The Company works actively on several levels to make
­employees aware of this goal. Both the Parent Company's board of Directors and the boards of the subsidiaries are
focusing on this and discuss the development in health, safety and environment in their meetings.
All the company’s employees are at all times obligated to
follow our policies, procedures and instructions based on
our governing documents (pages 44-45). This is vital in
order to obtain safe, efficient and environmentally friendly
operation of our vessels in accordance with national and
international requirements and regulations.
Caution shall be exercised to protect oneself, colleagues,
the environment, the vessel, the cargo, offshore installations and the third party.
Farstad Shipping is focused on learning and sharing experiences across the company's fleet, based on all types of
incidents both with and without damage. Significant
resources are invested in order to create safer workplaces and improve the working environment through
automation, remote and mechanization of operations with
a high risk potential. This is done to facilitate work as well
as to eliminate the need for the crew to be placed in risk
exposed areas. In order to obtain this, priority is given to
performing risk analyses in connection with events which
entail high risk when it comes to injuries and incidents
with major accident potential. We also focus on developing the safety culture through awareness work and leadership development. It is among other things embodied in
the company's Health, Safety and Environment policy
that everyone has the right and a duty to stop work which
is not performed safely.
An important part of HSE management is recording,
reporting and assessment of various HSE data. A number
of measurement indicators have been established to help
us in this work. The purpose is to document quantitative
development over time as well as to strengthen the decision indicators for a systematic and targeted improve-
ment work. One of these measuring indicators is the frequency of lost time injuries (LTIF). The Company measures
this as the number of injuries with absence per one million
hours worked, measured 24 hours a day so that recreational injuries are also included. For 2014, the lost time
injury frequency was 0.73. This is a slight improvement
compared with 0.77 in 2013. The actual number of lost
time injuries was six in 2014, same number as in 2013.
This is disappointing since we are putting a lot of efforts
into reducing this figure. However, it still confirms the
downward trend we have seen over a five-year period.
Another performance indicator for personal injuries is the
Total Recordable Case Frequency (TRCF) see graph on
next page. This figure indicates injuries where medical
attention has been given, and provide a more comprehensive picture of the number of injuries. We have seen a positive development in the TRC frequency during the last
years. In 2013, the TRC frequency was 3.22 and the figure was reduced to 2.32 in 2014. This is the best TRCF
Lost Time Incidents
LTIF - No of incidents per million work hours
1,75
1,50
1,25
1,00
0,75
0,50
0,25
0,00
2009
2010
2011
2012
2013
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farstad shipping asa
37
figures we have achieved ever, and we are now among the
best in this area in our industry. Various measures have
been implemented based on investigation of both incidents that have caused injuries and of incidents with
great potential for injuries. This work will be continued
and further developed.
Total Recordable Case
TRCF - per mill. work hours
7
6
5
Vessels contact/collision with offshore installations during transit and loading operations have high attention in
the industry. Implementation of measures to ensure
avoidance of this is a high priority in our company. It is
satis­factory to see that we had no incident within this
­category in 2014.
To continuously improve our safety performance and
make our operations safer and more efficient, we also
have a strong focus on learning from incidents. In that
respect more than 30 safety alerts were distributed to
the fleet in 2014.
We also focus on safety associated with the vessels visits
to shipyards both with regard to docking, repairs and
reno­vation of existing vessels, as well as when new vessels are built.
There is ongoing work to improve safety in connection
with our vessel operations, both in collaboration with our
customers and our suppliers. Good control of the vessels'
technical condition and backup systems (redundancy), as
well as management of operational safety, consist mainly
of the following elements: Transfer of experience and prioritizing when projecting and building new vessels, ongoing maintenance and upgrading of vessels. All operations
are performed by qualified and competent personnel.
Focus on awareness and compliance with external and
internal requirements.
RISKOP – RISKS IN OFFSHORE O
­ PERATIONS
We are participating in the research project «Risks in
­Offshore Operations». The project shall submit a report
describing the identified risk factors associated with
­platform supply services, anchor handling and subsea
operations.
A separate report highlighting the risk factors of lifting
operations will also be prepared. The intention is that the
material from the study shall be used in a planned
­Master’s Degree in Nautical Studies at the Haugesund
and Aalesund University Colleges, as well as contribute
specific suggestions for strengthening the offshore simulator training in which some of the participants are
involved.
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4
3
2
1
0
2009
2010
2011
2012
2013
2014
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39
03 | BUSINESS REVIEW 2014
CORPORATE
RESPONSIBILITY
Social responsibility
brings hope and jobs
As a 14-year-old, Aborigine Nick Marley began work as a pearl diver on the Northwest coast of Australia. Even after years of hard work, it is difficult for an Aborigine
to get an education or advance to higher positions in the pearl industry. Nevertheless,
for Nick Marley, an offer of training from Farstad Shipping was his big turning point.
PEARLDIVER:
Nick Marley as a pearl diver
in Kimberley
Broome, Australia. 32 years old Nick Marley is one of
the maritime trainees from indigenous Kimberley, who
graduated after completing a two year course in marine
training in cooperation with Farstad Shipping.
“Farstad has become a name that’s heard a lot around
Broome these days, because of the opportunities that
they’ve given to myself and 15 other indigenous lads
living here”, says Nick.
The talented saltwater people. “They have a natural talent for working at sea”, says Peter Barrow, HR manager
of Farstad Shipping in Australia. “Previous experience in
the pearl or fishing industry, or just their daily living with
the sea and boats means it’s second nature for them.”
Peter adds.
Football in Rio de Janeiro, Brazil. On the other side of
both the Indian Ocean and the South Atlantic, Rio is
host to another social project in which Farstad Shipping is heavily involved: Karanba.
“We have always worked with the ocean, so for us this
is the top of the career ladder, and we get to work with
one of the most professional companies operating at
sea.” says Nick.
– For years we’ve seen the big ships
coming into the port of Broome and
dreamed of being able to work there. But
it was difficult to get into the maritime
industry. Then we got the opportunity,
and we’ve not looked back since.
Nick Marley, Seaman, Farstad Shipping
Farstad Shipping has been operating in the Broome
region for many years. CEO Karl-Johan Bakken
explains: “We aim to be a contributor in all communities
where we operate. A long standing maritime tradition in
this region has created a solid sailor culture with dedicated, motivated and qualified seafarers, which for us
is completely natural to engage in.”
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Karanba was established by the Norwegian footballer
Tommy Nilsen in 2006. The aim is to help disad­
vantaged children and young people from the favelas,
through education and personal development. Karanba
gathers and engages youngsters whose tough lives are
deeply affected by crime and drug trafficking. Karanba
has nearly 700 girls and boys aged 6-20 involved in
daily football activities and 150-200 attending regular
English lessons. The project employs 25 Brazilians and
10-15 Norwegian volunteers at any given time.
A committing sponsorship. As one of four general
Karanba sponsors, Farstad Shipping has entered into
an agreement to offer apprenticeships to a number of
appropriately qualified youths each year. During 2013,
this participation led to us recruiting apprentices, who
all completed their training with good results. We now
permanently employ five of them on board our ships in
Brazil. Autumn 2014 saw a new group of five more
boys arrive from Karanba with the shared goal of working for Farstad Shipping.
Supporting our home region in Norway. In 2014,
Farstad Shipping has supported 115 initiatives of varying sizes within culture, sport and the community in the
Sunnmøre region. As a ‘small’ sponsor supporting many
activities, our community involvement is wide ranging.
Nick Marley started working at sea already when he was 14 years old, working through school holidays to make some pocket money. He wasn’t treated any different from the grownups and had to pull his
weight. It was physically demanding with work hours from dusk till dawn. The work was on very remote areas from south of Broome to the top of Northern Australia, and he has had some very close calls with
saltwater crocodiles and tiger sharks.
INDIGENOUS PEOPLE IN AUSTRALIA
Nick Marley’s first vessel was the Far
The indigenous people of Broome and the Dampier Peninsula
Fosna, and he has later worked on many of
have close ties to the sea. They are often called The Saltwater
Farstad’s vessels. Here from the AHTS
people and historically, Broome is known for its pearls. It is these
Far Stream outside Broome.
people, who for many years have driven the pearl industry.
However, in recent times the pearl industry has declined and with
it, the need for local labour. Thanks to the emergence of the oil
and gas industry, new job opportunities have arisen.
In partnership with Woodside, Farstad Shipping began recruiting
in this region to attract suitable candidates during 2010. The
recruitment programme builds on a close cooperation with
young candidates and their families, to ensure a thorough
understanding of the necessary obligations and requirements
for commitment to this program.
So far, the program has produced very good results. Since 2010,
we have recruited 14 trainees from the Kimberley region. 19
sailors have participated in the programme consisting of a
10-15 week course and 38 weeks at sea leading to an
Inte­­grated Rating Certificate of Proficiency. Today, 14 have full
time jobs with Farstad Shipping. One employee has taken another
career step and is presently Farstad’s first indigenous Second
Mate. He now plans further education to become Chief Mate.
Currently there are four trainees participating in this programme.
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43
GOVERNING DOCUMENTS
Governing documents are determined by the Board of Directors and shall be decisive in how we reach our goals.
They shall provide guidance for the development of corporate culture, and together with the values contribute to our
­employees making the right choices. The documents form the basis for our policies, processes, procedures and best
practice documentation.
CODE OF BUSINESS CONDUCT
Farstad Shipping's Code of Business Conduct describes
goals and rules, as well as our obligation to maintain our
integrity in our daily work. This provides guidelines for
what is acceptable behaviour for our employees and anyone representing the Company. The code defines how we
should run our business and emphasize the ethical standards we must follow in order to establish trust with our
stakeholders. Farstad Shipping's Code of Business Conduct is based on the company’s Values, and provides principles and indications for right and wrong with regard to
making decisions. The code, along with our endorsement
of the United Nations Global Compact, also provides
clear indications with regard to the principles regarding
human rights, labour rights, environment and anti­
corruption.
CORPORATE GOVERNANCE
Farstad Shipping's principles for good corporate gover­
nance shall lay the foundation for long-term value creation in the best interest of shareholders, employees and
society in general. "Norwegian code of practice for corporate governance" (last revised 30/10/2014) forms the
basis for the company's reporting in this area. Every year
the management and board of Farstad Shipping evaluate
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the principles for corporate governance and how these
are addressed in the Group. A more thorough description
of the principles for corporate governance can be found
on the company's website.
ISM (INTERNATIONAL SAFETY MANAGEMENT)
The «International Safety Management» code is the
international standard for safe leadership, operation of
vessels and prevention of pollution. ISM certification is
mandatory for all passenger ships and all vessels over
500 GT in international traffic and for shipping companies operating such vessels. Both the Company and all
our vessels are certified according to this code.
ISPS (INTERNATIONAL SHIP AND PORT FACILITY
SECURITY CODE)
The «International Ship and Port Facility Security» code
is the international standard establishing the minimum
safety arrangements for vessels, ports and government
authorities. ISPS certification is mandatory for vessels in
international traffic including passenger ships, cargo
vessels over 500 GT and mobile offshore drilling units as
well as ports servicing these vessels. All our vessels are
certified according to this code.
1
GOVERNING
DOCUMENTS
2
POLICIES
3
PROCESSES, PROCEDURES AND HANDBOOKS
CERTIFICATION ISO 9001:2008
This demonstrates that our management system is certified according to the standard for good quality management. The certification is performed by an independent
third party and documents to our customers, among others, that they can trust that we have implemented the
necessary internal routines in order to meet their obligations. ISO 9001:2008 is a particularly good tool for
reducing errors. The system identifies potential defects
before they occur, and prevents errors from being
repeated. Such error reduction gives advantages in the
form of increased safety and fewer operational disruptions with following cost savings. The standard is process
oriented and emphasizes continuous improvements and
customer satisfaction. It is adapted to all business processes affecting quality.
CERTIFICATION ISO 14001:2004
This demonstrates that our management system is certified according to the standard for good environmental
management. The certification is performed by an independent third-party and documents to our customers,
among others, that they can trust that we actively reduce
the company's and the services' environmental impact to
a minimum. The standard requires the Company to pre-
pare environmental goals and the necessary management system in order to reach such goals. ISO
14001:2004 certification establishes a good practice
for a precautionary policy for our company's environmental impact. With an ISO 14001 certified management
system, we go further than just complying with regulations. Our focus will be on continuous improvements.
CERTIFICATION OHSAS 18001:2007
The Company was certified according to OHSAS
18001:2007 in 2013. OHSAS 18001:2007 provides
us with a good framework for control and improvement
within health and safety in relation to working environment. This certificate documents that our management
system is measured in relation to a standard for good
practice and found to be in compliance with this. The certificate is issued by DNV-GL and shows employees and
other interest groups that we work according to the precautionary principle in order to secure our employees'
working environment.
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POLICIES
Farstad Shipping is working to reinforce its position as an internationally competitive and profitable company through
­efficient use of common procedures and work processes.
A policy is a formal statement of a principle or rule that
members of an organization must follow. It is a statement of intent, and is implemented as a procedure or
protocol. A procedure tells members of the organization
how to carry out or implement a policy.
Each policy addresses an issue important to the organization’s mission or operations.
Based on the directives included in the company's governing documents, Farstad Shipping has developed a number of policies to regulate our actions and decisions in
relation to important areas. Our policies shall communicate our Values and expectations for how things are done
in our organization. They aim at keeping our organization
in compliance with legislation. Another function is to document and implement best practices appropriate to the
organization, and to support consistent treatment of staff,
fairness and transparency. The policies shall help the management to make decisions that are consistent, uniform
and predictable, and protect individuals and the organization from the pressure of expediency.
Authority and responsibility regarding the policies rest
with the CEO. Farstad Shipping's policies provide guidelines for our behaviour, course of action, and our decisions
within important areas such as health, safety, quality and
environment, as well as social responsibility, ethics and
transparency, human rights, labour rights. These policies
are the same throughout the Group and apply to our
employees as well as anyone representing the Company.
Our policies can be found on our website.
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PROCESSSES AND PROCEDURES
Our management system IMS (Integrated Management System) is based on our governing documents and our policies,
and provides guidelines for the operation of the Company and the fleet.
Our management system, deals with the obligations
Farstad Shipping has in relation to HESQ, compliance
with rules and regulations and compliance with contractual obligations in relation to the operation and management of vessels. The management system is process-orientated and continually revised and updated to ensure
compliance with applicable laws, regulations and internal
requirements at all times.
As part of the efforts to make the IMS more user friendly
to our employees, we publish this in a common document
handling system. The system accounts for users needing
different information, and enables us to make changes
and distribute these to the entire Group within 24 hours.
Training office employees and sailors in using the system
is a central part of the efforts to ensure that our operations are in accordance with Farstad Best Practice.
Our processes describe the functional requirements made
to our operations. Our procedures and manuals contain
documentation related to activities and control procedures within each field. The responsibility for processes,
procedures and manuals rests with the respective process owner. In recent years the Company has undertaken
a project that includes the implementation of common
work processes and procedures which shall apply to the
entire Group. The introduction of common work processes
supported by common IT systems has resulted in better
integration and interaction and thus improved the flow of
information. This applies both between the company's
regional offices, within each office and between vessel
and office.
EMERGENCY PREPAREDNESS
In recent years the Company has implemented an extensive upgrade of the emergency preparedness system
across the Group in order to be better equipped to handle
a possible emergency situation. This means that we now
have a common system and pattern of action regardless
of region and area of operation. We have in cooperation
with professional external parties prioritized strengthening competence in emergency management through exercises and training for dedicated emergency preparedness
personnel.
In 2012 we started an extensive revision of our IMS for the
vessels with a view to improve the quality of the system
and make it more user friendly while ensuring that the system reflects Farstad Shipping's adopted common practice.
The revision continued in 2014. Our HR Offshore, Insurance and Newbuild departments and Subsea operations
started revising their processes in 2014, and will continue
training and implementation during first half of 2015.
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47
CORPORATE
SOCIAL RESPONSIBILITY
By profitable and responsible operation our company shall create positive financial, environmental and social effects.
We shall run our company in accordance with current laws and regulations as well as good business practice. We aim
to encourage a positive impact on the environment and our stakeholders including customers, employees, investors,
­communities and others.
UNITED NATIONS GLOBAL COMPACT
We are associated with United Nations Global Compact
at a GC Active level. Our annual report with regard to the
UNGC’s ten principles within human rights, labour rights,
environment and anti-corruption demonstrates our commitment to progress and transparency. The ten principles are a management platform for developing and
implementing responsible and sustainable guidelines as
well as procedures, and can be found at https://www.
unglobalcompact.org/aboutthegc/thetenprinciples/.
CODE OF BUSINESS CONDUCT
During the past few years we have conducted a thorough
internal process developing the company’s Code of Business Conduct. The Code of Business Conduct has been
implemented during 2014. All office staff and our sailing
crew have been presented and familiarised with the content of this document. Our Code of Business Conduct is
governing for our employees and anyone representing
the Company.
The presentation of the document throughout our company has engaged our sailing crew and office staff in
discussions on how to continue this work and the ongoing process of living our Values and thereby following
our Code of Business Conduct on all levels. Our focus in
the coming year is to develop periodic training and
guidelines in how to handle dilemmas that may occur.
Anti-corruption is a prioritized area. Information to all
employees, including guidelines and training, is communicated throughout our organization. There is focus on
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giving support and building up dilemma training, so our
Staff is better equipped to make the right decisions. A
reporting channel for whistle blowing is also established. The Company now looks at the initial experiences with anti-corruption and how we can improve
transparency, through supporting our employees.
In 2014, a supplier declaration was launched by our
purchase departments, which started an internal process of adaption to our Code of Business Conduct, selfassessment form and terms and conditions. These documents aim to communicate to our suppliers the
expectation of compliance with all applicable laws and
regulations, and to be in full compliance with the
Farstad Shipping Code of Business Conduct:
https://www.farstad.com/business/our-company/
code-of-business-conduct.
Through our updated guidelines and demands towards
our suppliers, we now point at the obligation to keep
accurate records of business and financial transactions. We are also focusing on the third party, and on
financial transactions undertaken on Farstad Shipping’s
behalf. This will help secure good and regulated working
conditions for anyone involved in the manufactoring of
goods and services to our company.
FINANCIAL SUPPORT AND COLLABORATION
Farstad Shipping wishes to be a positive contributor to
the local communities where we are present. Through
our contributions to sports, culture, various organisations and events we aim to create positive associations
and make our company visible. Through active
­collaboration and support for cultural and sports events
we contribute to create social meeting points in the local
community.
We support various projects in connection with education
and social initiatives for children and youth. Farstad Shipping has ongoing sponsorship agreements with social
projects in Australia, Brazil and Norway. We focus on education of young people, and hope to motivate them to be
our future colleagues or choose a future in the maritime
industry.
Karanba is a social project in Brazil supported by,
amongst others, Farstad Shipping. Through this project
we take in a certain number of trainees every year. In
2013 Farstad Shipping employed five students from
Karanba who had completed six months of intensive education under the auspices of the Brazilian Navy. In 2014 a
new group of trainees from Karanba attended the maritime courses, and we hope to see them as colleagues in
the maritime industry in the future. By supporting
Karanba we contribute to giving these young people an
opportunity to receive an education and a job, and at the
same time we invest in future maritime expertise.
In collaboration with Woodside, we have for several years,
offered a training programme aimed at the indigenous
population of the Kimberley region in Australia. Through
this programme they get an opportunity to achieve an
integrated Rating Certificate of Proficiency. The training
consist of 15 weeks of school in order to prepare for the
job on board. After this they must undergo 38 weeks of
mandatory training at sea before they receive their
certifi­
cate. Through this scheme they also have the
oppor­tunity for further education. As of today Farstad
Shipping employs 14 sailors who have participated in this
­programme.
In Norway we have a partnership with Stafsethneset
School. This is a specialised school for young people in
Aalesund. The school offers training in boating in addition
to other practical projects.When the school was in need
of a new boat, Farstad Shipping donated one to them and
assisted them in adapting the boat to the school's needs.
We are continuing the collaboration with the school on an
annual basis, and skilled maritime personnel amongst our
active retired colleagues also assist the school on behalf
of Farstad Shipping.
In 2014, Farstad Shipping supported 115 initiatives
within culture, sports and social involvement. As a “small”
sponsor to many activities we create a broad community
engagement.
We wish to maintain this form of social participation in the
regions where we operate, adapted to local culture and
needs.
Farstad Shipping donated this boat to Stafsethneset School.
From the left: Hans Pilskog (Stafsethneset school), Nils Kristian
Drønnen (Vegsund Slip AS) and Alf Giske (Farstad Shipping).
Source: Sunnmørsposten
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04 | BUSINESS REVIEW 2014
THE
FARSTAD
FLEET
Green vessels
painted red
In the near future, Norway’s first berth with onshore electric power supply for
offshore vessels will open in Bergen. It is no coincidence that Farstad Shipping has
been a contributor to this important environmental milestone.
ZERO: Far Sapphire,
Farstad Shippings first
vessel in the zero-vision
programme, deleivered in
2006.
Saturday 1st November 2014: Sister vessels Far Sygna
and Far Sun are moored at Festningskaien in Bergen,
decked in flags ready for their inevitable rendezvous
with champagne and wishes for good luck on all seas.
They are packed with world class green technology – a
continuance of the company’s long standing environmental commitment. Both ships are also equipped to
use onshore electricity, which replaces electricity production on board while in dock, thereby reducing harmful gas and particle emissions to zero. Bergen’s topography has made onshore power to cruise and offshore
vessels a major environmental issue in the city.
Milestones. Farstad Shipping has led the way in developing new environmental technology for more than 10
years and in close cooperation with the maritime cluster in Western Norway. All the ships delivered after
2006 have significant investments in environment
saving measures that extend way beyond class and
authority requirements. This environmental commitment resulted in the 2009 Heyerdahl Environmental
Award, established by Thor Heyerdahl and the Norwegian Shipowners’ Association in 1999. The award
recognizes individuals, or companies within the maritime industry that have introduced or developed new
and profitable environmental technology.
Continuous renewal. All Farstad
newbuilds contribute to the enviFarstad Shipping is a leading force in using newly
ronment through hull design, dieselelectric propulsion and new catadeveloped, environmentally friendly technology and we
lyst technology for reduced fuel
prove once more that we take climate change seriously.
consumption and emissions. NOx
Karl Johan Bakken, CEO, Farstad Shipping
emissions are reduced by up to
95% and the risk of harmful pollution via accidental damage is minimized by ensuring that all cargo
tanks placed against the outer hull
Cooperation. In June 2014, when Bergen Havn (Port of
contain only water. Conscious use of recyclable
Bergen) decided to build Norway’s first onshore power
materials contributes further to the environment.
system for offshore vessels, they had little experience
to draw upon. For Bergen’s Harbourmaster, Inge
“Continuous renewal of the fleet is an important step in
Tangerås, the environmental aspects of the harbour’s
our long-term goal of eliminating harmful discharges
development, operation and management are vital.
into the sea and air. The interaction between compeSince Farstad Shipping is one of the users of the berth
tent, dedicated crews and modern, energy-efficient
at Festningskaien, with multiple vessels equipped for
vessels, enables us to operate with a significantly
using onshore power, the company’s Vice President –
reduced environmental footprint,” says CEO Karl-Johan
Technology & Development, Børge Nakken, was asked
Bakken.
to contribute as a technical consultant.
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Far Sygna and her sister vessel Far Sun are one of
the worlds most environmentally friendly offshore
vessels ever built.
Since 1990 Farstad Shipping has
spent 22 billion NOK in the
construction and development
of new vessels.
The Company was awarded the
Heyerdahl Environmental Award in
2009, and both Skipsrevyen and
Offshore Support Journal awarded
two of our vessels “Ship of the
Year”, respectively in 2009 and
2012.
We hope the pilot project for
offshore vessels is the start of
electrification of the harbour.
Farstad Shipping is an important
partner for us.
Farstad Shipping, as a tech­­nical
consultant, con­tributed to the
develop­ment of the world’s first
shore power plant for offshore
vessels in Bergen.
An offshore vessel uses auxiliary
engines to produce the necessary
Even Husby, Project Manager
for environment, Port of Bergen.
power and energy to maintain
essential operations while docked.
Using shore power instead of
auxiliary engines while the ship is
docked reduces sulphur particles,
NOx and CO2 emissions to zero.
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53
THE FARSTAD FLEET
We have a modern and competitive fleet consisting of 61 vessels, whereof 26 PSV, 31 AHTS, and 4 SUBSEA vessels. As a
part of our fleet renewal we have three subsea vessels under construction, two Vard 3 07 and one Vard 3 17, for delivery
in the period April 2015 to November 2016. At the moment, 17 vessels are stationed in Brazil, 16 in North-West Europe,
27 in Asia Pacific, and 1 in East-Africa.
AHTS 31
PSV 26
SUBSEA 4 +3 newbuilds
Specially designed vessels for anchor
handling and towing offshore platforms,
barges and production modules/vessels.
Specially designed vessel for transporting
supplies and equipment to and from offshore
installations. These vessels transport general
cargo, primarily in containers.
Vessels specially designed for operations
at great depths, installation and
maintenance of seabed facilities.
ANCHOR HANDLING TUG SUPPLY VESSELS
PLATFORM SUPPLY VESSELS
VALUE-WEIGHTED AVERAGE AGE
Through our investment programme, as well as sale of our
older vessels, the current fleet presents itself as modern
with a value-weighted average age as per 31.12.14 of
7.3 years. For the PSV fleet the value-weighted average
age is 6.4 years, for the AHTS fleet 7.6 years, while the
subsea fleet has a value-weighted average age of approx.
8.3 years. The remaining newbuild programme will reduce
the value-weighted average age of the subsea fleet with
about 3.5 year. This presupposes that no vessels are sold
before all the newbuilds have been delivered in November
2016. For all newbuilds the expected cost price is set
equal to market value.
CHANGES TO THE FLEET IN 2014
Delivery of newbuilds: Far Sigma (UT 731 CD) and Far
Sirius (UT 731 CD) were delivered from Vard Langsten in
February and April respectively. In addition, Far Sun (Vard
1 07) was delivered from the same yard in July. Far Sygna
(Vard 1 07) was delivered from Vard Vung Tau, Vietnam in
August.
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CONSTRUCTION AND MAINTENANCE VESSELS
Sale of vessels: In 2014 we sold one older vessel, PSV
Far Grimshader (1983, UT 706 L). The sale gave a book
gain of NOK 15 million. In March 2015 Far Sky was sold.
Contract for newbuild: In December 2014, Farstad Shipping signed an agreement with Vard Group AS for the
construction of one SUBSEA/IMR vessel at Vard Vung
Tau, Vietnam. The contract is connected to a Framework
agreement with Technip Norway AS. The vessel is of Vard
3 17 design and is constructed for subsea/ IMR operations (Inspection, Maintenance and Repair). The vessel
will be delivered in November 2016.
CONTRACT COVERAGE
The contract coverage for the Farstad fleet including
charterer options is about 67% for 2015 and about 52%
for 2016.
business review 2014
4TH Q - 18
3RD Q - 18
2ND Q - 18
1ST Q - 18
4TH Q - 17
3RD Q - 17
2ND Q - 17
1ST Q - 17
4TH Q - 16
3RD Q - 16
2ND Q - 16
1ST Q - 16
4TH Q - 15
3RD Q - 15
2ND Q - 15
1ST Q - 15
CONTRACT OVERVIEW AS PER FEBRUARY 2015
100
%
80
60
40
20
OPTI
0
TERM
TERM CONTRACTS
OPTIONS
farstad shipping asa
55
UNCOMPROMISING
VESSELS FOR
DEEP WATERS
During 2015, Farstad Shipping will take delivery of two new subsea
vessels in the construction segment. Both vessels are designed and
equipped in order to live up to the corporate vision “Better by Far”.
These vessels will conduct subsea construction work as well as
inspection, maintenance and repair of subsea equipment and
installations, down to a depth of more than three thousand
meters, under various conditions. Taking into account such challenging, harsh environment, efficiency and safe operations must
be considered a common issue.
What our clients really require is operational predictability and
reliability with highest degree of uptime. Delays, breakdowns and
other unforeseen events may have considerable cost implications. For such demanding operations the vessels, including
equipment and crew, simply have to be the best there is.
This also means there has to be technical redundancy within all
critical components and systems. Systems have additional
capacities beyond the minimum requirements built in, and there is
for example four main engines, one harbour generator, six thrusters, one main propeller with dual electric drive system, two subsea cranes, four service cranes, two moon-pools, two work ROVs
(and space for a third), DP3 – Dynamic Positioning System of the
highest redundancy class, etc. In the unlikely event of a worst
case single failure, the vessel has the capability to complete the
operation safely without need of any assistance. ”Double and
triple redundant systems” is as obvious onboard this vessel, as in
airplanes.
In accordance with Farstad Shipping’s environmental objectives,
the hull design and propulsion configuration is optimized to
reduce fuel consumption and emission under any operative condition. Furthermore, selective catalytic converters clean the
exhaust gases. All these measures offer not only cost savings,
they also reduce harmful emissions.
Finally, it is of utmost importance that our newbuilds are regarded
as comfortable, safe workplaces that attracts the best professionals at all levels.
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350 TONS CRANE
Efficient and redundant crane with
capacity of 350t until 1500m and
250t until 3000m water depth.
50 TONS CRANE
Efficient and redundant auxiliary crane with
capacity of 50t and 3000m water depth to
efficient support ROV and crane operations.
WORK ROV
2 x Work ROV for inspection, survey
and support of any subsea operations.
MOONPOOL SAFE
2 x moonpool for safe and efficient
installation of subsea equipment and
launch and recovery of ROV.
FAR SLEIPNER TBN
DESIGN VARD 3 07 YEAR BUILT 2015 YARD VARD Langsten / Yard No. 822 LENGTH (LOA) 142�6 m DEPTH 11�4 m DRAFT 8�0 m
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05 | BUSINESS REVIEW 2014
THE MARKET
FOR OFFSHORE
SUPPLY VESSELS
A leading
player
The close cooperation between shipbuilders, shipowners and equipment
suppliers on the coast of Norway started more than 100 years ago, when
most activity was fishing related. This cooperation laid the foundation for
what is now the world’s leading maritime cluster in the offshore industry.
Welcome to the region of Møre on the northwest coast of Norway.
G LO B A L C E N T R E O F
EXPERTISE
GCE: The Møre region’s
maritime cluster
encompasses companies
from all segments of the
global value chain for
advanced marine
operations. Because of its
leading position in the world
and the high rate of
innovation, this cluster was
given Global Centre of
Expertise status in 2014.
Møre is home to one of the world’s very few complete
maritime clusters. It consists of approximately 215
companies in ship design, shipbuilding, shipping education, equipment, research and finance. Among the
biggest players are Farstad Shipping, Rolls Royce
Marine, Ulstein Group, Vard and Brunvoll. The cluster’s
turnover in 2013 was approximately 55 billion NOK,
and it employs 22,000 people in the region.
A driving force. Farstad Shipping is a driving force in
Norway’s maritime industry. When requesting solutions
from different providers in a project, the shipyards,
designers and other suppliers are strongly encouraged
to collaborate and create new answers. This coordination ensures new technologies are quickly implemented
on newbuild Norwegian vessels. The demand for continuous innovation contributes to the increased expertise and competitiveness of the entire cluster.
Farstad Shipping and the Cluster. During 1990 to
2015, Farstad Shipping ordered 67 vessels at a value
of approx. 22 billion NOK. Half of this was spent on
ships delivered from the region. Karl-Johan Bakken,
CEO, Farstad Shipping says: “The Cluster has become
a popular concept in recent times. It reflects the
structure of industry in our region.”
A true child of the Cluster. Far Sirius, delivered in 2014,
is a good example of the cluster and its activities. Firstly,
it is a very environmentally friendly vessel – a consequence of technology created in Møre that has reduced
emissions from this type of vessel by almost 50% in 15
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years. Secondly, Far Sirius reflects the breadth within
this maritime region: It encompasses design from
Ulsteinvik, rescue equipment from Aalesund, vacuum
toilet system from Hareid, steering gear from Tennfjord,
generator set from Søvik and deck machinery from
Harøy. And of course: She was built in Tomrefjord and
sails with a captain from Brattvaag.
The key lies in our culture of cooperation.
We compete when we have to, and
cooperate whenever we can.
Karl-Johan Bakken, CEO, Farstad Shipping
Karl-Johan Bakken reflects: “The maritime cluster is crucial in order to keep and develop a viable maritime industry here in the region. It is the best form of protection
against competition from low cost Asian suppliers. To
stay ahead in both shipbuilding and design & development, is necessary to maintain our competitiveness.
Farstad Shipping aims to be at the forefront in adopting
new and environmentally friendly technologies. Far
Sirius is a sparkling example of this, and I’m proud of
what our employees and partners in the maritime cluster
have achieved together.”
SUM OF EXPERTICE
Far Sirius was delivered in 2014, and is one of the most environmentally friendly
offshore vessel ever built. 42 local companies from 18 locations in the Maritime
Cluster has contributed in developing and building the vessel, where design,
equipment and technology all comes from local suppliers .
65%
LOCAL DELIVERY
42
18
LOCAL COMPANIES
410
LOCATIONS
NOK MILL. LOCAL
DELIVERY
INDUSTRY CLUSTER
A geographical concentration of related
companies and institutions within an industry,
technology or value chain.
The advantage of clusters is that expertise and
ideas flow between businesses in a way that they
all benefit from. The best known industrial cluster
NORWAY
FAR SIRIUS
today, is probably Silicon Valley.
Design: UT 731 CD
Møre’s cluster is one of the few complete maritime
Build: No. 810 Vard Langsten, 2014
clusters in the world, and has strong international
Length: 87,40 m
players at all levels.
Breadth Moulded: 21m
INNOVATION The Maritime Cluster in Møre has grown as a
Draft (max): 7.8m + 0.9m Skeg/Nozzle
result of the strong cooperation between shipowners, shipyards
Maritime Cluster 2014: 20 shipowners, 13 design
Deadweight: 3954mt (d=7.765m)
and equipment suppliers. This experience based product develop-
companies, 14 yards and 169 equipment
Gross Register Tonnage: 6170
ment has ensured rapid implementation of new solutions and
manufacturers totaling approx. NOK 55 billion in
provided common competitiveness. It began centuries ago with
revenue, and employs more than 22,500 people.
traditional open fishing boats and made a huge leap with the
engine revolution of the 1900s. The Cluster saw opportunities
50% of all large offshore vessels in the world are
when oil was found in the North Sea and is currently leading the
built within our cluster. One third belongs to
way forward for advanced vessels for offshore operations.
shipowners within the cluster while 75% of them
Farstad Shipping has been a key driver since the 1970s.
are based on the cluster designs.
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THE MARKET IN GENERAL
In 2014, the market for offshore service vessels was characterized by overcapacity of tonnage and pressure on rate
levels. The drop in the oil price further adversely affected the market prospects. Reduced activity level, cost reductions
and the high contracting activity of offshore service vessels recent years have created a substantial market challenge
for the industry.
An improvement in the market balance of offshore service vessels is dependent in an increased activity level
offshore, and a reduction in the contracting activity of
new offshore service vessels. Even though there are
expectations for an increase in the oil price towards the
end of 2015, the uncertainty is high as to how long it will
take for the demand to pick up, and how long it will take to
absorb the oversupply of vessels. With the existing fleet
and newbuild structure it is expected that the subsea
market will recover earlier than the traditional AHTS and
PSV markets. Especially, the growth in the PSV fleet will
be too large in the years to come as contracting activity
of PSVs has continued with surprising strength in 2014.
Traditionally, Farstad Shipping has concentrated its
activity in the segment of large and medium sized AHTS
and PSV. Within the Subsea segment we have concentrated our activity on ROV support operations, light construction work, ploughing and IMR work (Inspections,
Maintenance and Repair).
AHTS AND PSV
The segment of large and medium sized AHTS and PSV
has historically been defined as AHTS with engine power
above 10,000 BHP and PSV with load capacity larger
than 2,000 DWT. In the 1990s the market in North-West
Europe was the most important market for this segment.
However, the increased oil activity worldwide has made
this into a global industry. The key drivers for this development have been increased demand for harsh and deep
water operations supporting both exploration and production activity. Increased subsea activity has also contributed to the development.
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The largest markets for large and medium sized supply
vessels are North-West Europe (20.5%), Asian Pacific
(20.0%), Brazil (18.5%), the Gulf of Mexico (16.5%) and
West-Africa (13.5%). There are currently 220 operators
within this segment. This represents more than a tripling
of the number of operators in 10 years. Since the beginning of 2004, the number of vessels worldwide has
increased from 473 units to 1,520 units. The largest
part of the fleet growth has taken part outside NorthWest Europe. The growth in the number of vessels in markets outside North-West Europe has been 265% during
this period. This development is expected to continue as
90% of all newbuilds are being built outside North-West
Europe.
At the beginning of 2004, the number of large and
medium sized AHTS in the North-West Europe market
was 50 units, which was 23% of the world AHTS fleet.
Currently there are 67 units in this market corresponding
to 13% of the AHTS fleet. A similar development has
taken place for the PSV fleet. At the beginning of 2004
there were 93 PSV in North-West Europe, corresponding
to 36% of the fleet. This number has now increased to
249 units, corresponding to 25% of the total PSV fleet.
The number of PSVs in North-West Europe is currently as
big as the total PSV fleet 10 years ago.
After delivery of two newbuilds in 2014 Farstad Shipping has a fleet of 32 AHTS. The AHTS fleet contributed
57.8% of Farstad Shipping’s income in 2014. The PSV
fleet counted 26 units at the end of 2014 and contributed 35.5% of the income.
AHTS >10 000 BHP AND PSV >2 000 DWT AND NEWBUILD SORTED BY OWNERS
Number of vessels
(20 largest)
120
90
60
30
NYBYGG (503)
PSV
PSV > 2000 DW
AHTS
AHTS > 10000
HAVILA
BUMI ARMADA
VROON
ISLAND OFFSHORE
EZRA HOLDING
SIEM OFFSHORE
SOLSTAD OFFSHORE
HARVEY
SEACOR
COSL
DEEP SEA SUPPLY
DOF
SWIRE
HORNBECK
MÆRSK
FARSTAD SHIPPING
GULF OFFSHORE
TIDEWATER
BOURBON OFFSHORE
EDISON CHOUEST
0
NEWBUILD
Source: IHS/Platou/Farstad
AHTS > 10000 BHP PER REGION
Number of vessels
160
120
80
Jan.-15
40
JAN. 2015
JAN. 2014
Jan.-14
JAN. 2013
0
NORTH-WEST
EUROPE
SOUTH/
CENTRAL
AMERICA
ASIA
PACIFIC/
CHINA
WEST
AFRICA
GULF OF
MEXICO
CANADA
JAN. 2012
Jan.-13
JAN. 2011
MEDITER./
BLACK SEA
Jan.- 12
Source: IHS/Farstad
Jan.-11
PSV > 2000 DWT PER REGION
Number of vessels
200
Jan.-15
150
Jan.-14
Jan.-13
100
50
Jan.-12
JAN. 2015
JAN. 2014
Jan.-11
JAN. 2013
JAN. 2012
0
NORTH-WEST
EUROPE
GULF OF
MEXICO
SOUTH/
CENTRAL
AMERICA
ASIA
PACIFIC/
CHINA
WEST
AFRICA
MEDITER./
BLACK SEA/
MIDDLE EAST
JAN. 2011
CANADA
Source: IHS/Farstad
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63
SUBSEA
Subsea production systems are used to develop reservoirs, or parts of reservoirs, which require drilling of the
wells from more than one location. Deep water conditions, or even ultra-deep water conditions, can dictate
the development of a field by means of a subsea production system, since traditional surface facilities might be
either technically unfeasible or uneconomical due to the
water depth. Subsea installations help to exploit
resources at progressively deeper waters. The trend has
been towards more extensive and complex subsea equipment and larger subsea modules. Subsea production systems can range in complexity from a single satellite well
with a flow-line linked to a fixed platform, FPSO or an
onshore installation, to several wells on a template or
clustered around a manifold, and transferring to a fixed or
floating facility, or directly to an onshore installation.
The trend is to conduct more of the production operations
subsea with no installations visible above the sea. Subsea production is chosen to an increasing extent both in
order to develop new fields and to increase production of
older fields. There are around 5,000 producing subsea
wells worldwide which need to be inspected and maintained. In Norway this has become the dominant solution.
The development of subsea oil and gas fields requires
specialized equipment. The equipment must be reliable
enough to safeguard the environment and make the
exploitation of the subsea hydrocarbons economically
feasible. The installation, inspection, maintenance and
repair of such equipment requires specialized and expensive vessels. The vessels need to be equipped with suitable lifting capabilities, large open decks, high levels of
station keeping with DPII or DPIII and with diving and/or
ROV equipment. The size of vessel and capacities of
equipment needs to be suited to the water depths and
the weather conditions in the area of operations.
There are currently 215 vessels operating within the segment characterized by the research company IHS as
“Harsh & Deepwater pipe lay and subsea support vessel”.
IMR (Inspection, Maintenance and Repair) vessels constitute about 60% of the fleet. With its three Subsea vessels under construction, Farstad Shipping has chosen to
focus on the top end of the IMR market. The vessels will
also be well suited for some light construction work and
pipe laying activities.
As shown in the table below, the market in North-West
Europe is still the largest within this type of tonnage.
However, it is worth noting that expected growth in the
time to come is greater in other regions. The implementation of planned projects will of course depend on how the
new oil price regime will affect the oil companies spending in the years to come. This may lead to revised schedules and a possible flattening of the activity level.
At the end of 2014 Farstad Shipping had four vessels in
the subsea segment contributing 6.3 % of the income in
2014. This share will increase with the delivery of the
newbuilds. Another six of the Company’s AHTS are
equipped to perform ROV operations. All ROV operations
on board the vessels are performed by companies that
are specialists in this type of operations.
H&D SUBSEA SUPPORT VESSEL DEMAND PER REGION
Vessel years (300 days basis)
Transit
Asia Pacific
Med. & M.I.E.
West Africa
Latin America
North America
NW Europa
200
150
100
50
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
(Source: IHS)
Source: IHS
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NEWBUILD ACTIVITY
In 2014, the total fleet of large and medium sized supply
vessels increased by 122 vessels. This represents an
increase of 8.7%. The increase in number of AHTS was 4
(0.8%) and in PSV 118 (13.2%). The corresponding
numbers for 2013 were an increase of 162 vessels, 22
AHTS (4.5%) and 140 PSV (18.5%). At the beginning of
2015 the order book for this type of tonnage contained
413 (379) units. This corresponds to an increase of 27%
of the existing fleet. Of these, 85 (48) are AHTS and 328
(331) are PSV. About 75 % of the vessels are scheduled
to be delivered in 2015. We consider it unrealistic that all
these vessels will be delivered in 2015.
The order book for various types of subsea vessels has
also increased the past few years and now lists 64 vessels, which is an increase in the fleet of 32%. About
50% of the vessels are scheduled to be delivered in
2015 which also seems to be optimistic. Out of the 64
newbuilds, 36 units are so-called ROV support vessels.
The maritime industry in Norway still has a leading position in the development of new offshore vessels, and Norwegian shipyards still play an important role in the construction of the more advanced offshore vessels. This is
particularly true when it comes to subsea vessels. However, Asian yards including Chinese yards have substantially increased their market share in recent years, especially within the PSV segment. At present, Chinese and
Asian ship yards count for about 70% of all supply vessels (PSV and AHTS) on order. Chinese yards alone have
208 vessels on order out of a total order book of 413
vessels (market share of 50%). Back in 2007, the total
order book consisted of 290 vessels and the market
share of Chinese yards was 9% (26 vessels). Also within
the subsea segment the Chinese shipyards are strengthening their position with a market share of 23%.
NEWBUILD BY CONSTRUCTION PLACE
Number of vessels
Norwegian shipyards now count for 5 % of the order
book of PSV and AHTS (36% at the beginning of 2007).
However, within the subsea segment the Norwegian
shipyards still have a strong position. At the beginning of
2015, 15 subsea vessels (23% of the order book) were
under construction in Norwegian yards.
The order book at Brazilian shipyards has decreased during 2014. At Brazilian shipyards there are 38 (44) offshore service vessels under construction. These are distributed on 3 AHTS (5), 31 PSV (38) and 4 subsea
vessels (1). The vessels are being built for work on the
Brazilian continental shelf and mainly for long-term contracts with Petrobras.
Also the order book at US shipyards has declined during
2014. There are currently 52 (77) vessels ordered at
shipyards in this region. These comprise 5 AHTS (2), 37
PSV (71) and 10 subsea vessels (4). It is expected that
most of these vessels will be trading the market in the US
Gulf of Mexico.
NEWBUILDS BY DELIVERY TIME
NEWBUILDS BY DELIVERY TIME
Number of vessels
Number of vessels
100
100
80
80
60
60
40
40
20
20
0
0
1Q
2Q
3Q
200
150
100
50
PSV (328)
RUSSIA
SINGAPORE
POLEN
MALAYSIA
KOREAN
NEDERLANDS
VIETNAM
ROMANIA
INDONESIA
INDIA
SUBSEA (64)
JAPAN
BRAZIL
NORWAY
USA
CHINA
0
AHTS (85)
1Q
1Q
15
15
2Q
3Q
4Q
1Q
2Q
2Q
3Q
4Q
1Q
2Q
15
15
15
16
16
15
15
15
16
16
SUBSEA
SUBSEA
AHTS < 12500 BHP
AHTS <12500-20000
12500 BHP BHP
AHTS 12500-20000 BHP
3Q
3Q
16
16
4Q
4Q
1Q
2Q
3Q
16
17
17
17
16
17
17
17
AHTS > 20000 BHP
AHTS
20000
BHP
PSV < >4000
DWT
PSV <> 4000 DWT
PSV > 4000 DWT
Source: IHS/Platou/Farstad
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65
THE ASIAN PACIFIC MARKET
In 2014, 43.5% of the revenue in Farstad Shipping came from this region (47.5% in 2013). This is equivalent to a revenue
of NOK 1,902.4 million (NOK 1,901.4 million).
The region again experienced over supply of tonnage,
significantly out-weighing stagnant demand, with the
older vessels the worst affected in terms of time charter
rates and second hand values. The challenge within the
region is to realise strong utilisation and revenue for all
outstanding tonnage following such a significant downturn in the world market.
Within Australia Farstad Shipping maintained its strong
position by securing a number of new key long term contract awards. The long term contract award with INPEX
Corporation in supporting their Ichthys Development
provides further long stability within our Australian operations and again demonstrates Farstad Shipping’s long
term commitment to Australia. This also highlights
another key oil & gas operator aligning themselves with
us for the delivery of key services for their critical project.
South-East Asia has performed well on the global stage
despite the large emerging economies of China and India,
experiencing sharp reductions in growth as central banks
worldwide gradually withdrew liquidity from the market.
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South-East Asia’s growth and development prospects
will depend critically on its capacity to meet rapidly growing energy demand with secure and affordable supplies.
This region is one of the more attractive oil and gas markets offering high potential for growth in exploration and
production activities.
Overall rig utilisation remained steady throughout the
year at approximately 82%. Within Australia it was a
somewhat volatile market for rigs. Rig numbers remained
steady, however there was about 30% movement in the
actual rigs within the market due to operational requirements.
Farstad Shipping has 27 vessels in the region (16 AHTS
and 11 PSVs) which continue to be of service to our
­clients. Within 2014 the arrival of AHTS Far Sirius and
PSV Far Seeker into Australia further enhanced the fleet
profile and our strong market position, service de­livery
(offshore/onshore) and reputation. The focus of our fleet
safety, service and competency will be the foundation for
our continued successful operations.
OFFSHORE SERVICE VESSELS
OFFSHORE SERVICE VESSELS IN ASIA PACIFIC – SORTED BY OWNERS
Number of vessels
AHTS > 10 000 BHP and PSV > 2 000 DWT (20 largest)
Number of vessels
25
150
20
100
15
10
50
5
0
PSV > 2000 DWT
AHTS > 10000 BHK
GO OFFSHORE
JAYA OFFSHORE
BUMI ARMADA
SHIPPING CORP INDIA
INTRA OIL
GREATSHIP
GREAT OFFSHORE
MÆRSK
EXECUTIVE SHIPPING
TIDEWATER
JASA MARIN
FEMCO
POSH SEMCO
DEEP SEA SPPLY
GULF
BOURBON OFFSHORE
2015
SWIRE
2014
COSL
2013
EZRA HOLDINGS
2012
PSV
AHTS
FARSTAD
2011
0
Source: IHS/Farstad
PSV
AHTS
NEWBUILDS
PSV > 2000 DWT
AHTS > 10000 BHP
FARSTAD SHIPPING OFFSHORE SIMULATION
CENTRE (FSOSC)
FSOSC in Perth continues to provide critical support to
Farstad Shipping in the Asia Pacific region and constitutes an important part of our profiling in the Australian
market. As an integral part of the Group, the centre plays
a key role in building staff competencies and total team
performance and is continuously developing its service
offerings to enhance this support.
range of clients in Dynamic Positioning and Offshore
Crane Operations. FSOSC also provides consultancy
services to Farstad Asia Pacific in the areas of Dynamic
Positioning and ECDIS operations.
FSOSC has made a significant investment in six partmission bridge simulators and the addition of new classroom facilities for the intended delivery of Electronic Display and Information Systems (ECDIS). This programme
has been a great success in 2014 with a significant proportion of Farstad officers trained in readiness for the
implementation of ECDIS on board the vessels in 2015.
FSOSC is recognised as a ‘centre of excellence’ both
within Farstad and in the wider offshore and oil and gas
industries. This has resulted in an increase in verification
of competence and offshore audits being carried out for a
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67
THE BRAZILIAN MARKET
In 2014, 32.2% of the revenue in Farstad Shipping came from this region (29.6% in 2013). This is equivalent to a revenue
of NOK 1,407.7 million (NOK 1,186.7million).
The Brazilian economy had a weak performance in 2014
compared to the previous years. The main problems were
the stagnation of it’s economy with a GDP growth of just
0.1%, high inflation (6.4%), low industrial competitiveness and indolent fiscal policy conducted by the government. The ­Brazilian currency also devaluated 25% in the
past 15 months, and the interest benchmark rate ended
2014 at 11.75% per year.
The president, Ms. Rousseff, was re-elected in October by
a narrow margin, and directly after the election recognized that Brazil needed more business-oriented policies.
The outlook for 2015 according to most market analysts
will remain the same as 2014. In order to recover credi­
bility, the government started an adjustment process,
naming a market-friendly Finance Minister who announced measures to improve fiscal results and reduce
inflation.
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Petrobras also had a very difficult year due to the several
corruption scandals related to political campaign finan­
cing involving the country’s largest construction firms,
and somehow paralyzed capital spending. Three former
directors were arrested during the investigation. The
resig­nation of all managing directors at the beginning of
2015 further challenges the performance of Petrobras.
Petrobras’ operational performance has also disappoin­
ted investors in recent years. Petrobras’ revenues remained stable over the past few years, approximately
USD 130 billion from 2010 to 2014. However, due to increasing costs there has been a slight increase in its reserves and production. Its EBITDA margin has reduced
from 36% in 2010 to 22% in 2014 (data from 2014 is
related to market consensus as PB has not released final
2014 figures). The major consequence was the reduction
of more than 50% of its market value from September
2014 to February 2015.
OFFSHORE SERVICE VESSELS BRAZIL – SORTED BY OWNERS
OFFSHORE SERVICE VESSELS
Number of vessels
AHTS > 10 000 BHP and PSV > 2 000 DWT (20 largest)
Number of vessels
40
150
30
100
20
50
10
0
HORNBECK
HARTMANN
HAVILA
PSV > 2000 DWT
AHTS > 10000 BHK
OLYMPIC
FINARGE
BRAVANTE
AUGUSTA
STARNAV
E.R.OFFSHORE
SOLSTAD
SIEM OFFSHORE
ULTRAPETROL
DEEP SEA SUPPLY
DOF
FARSTAD
0
SAVEIROS
2015
CBO
2014
MÆRSK
PSV
AHTS
2013
TIDEWATER
2012
EDISON CHOUEST
2011
Source: IHS/Farstad
PSV
AHTS
The possibility for Petrobras to lose its credit investment
rating is clear as the rating company Moody’s already has
downgraded its rating in February 2015. This would directly affect the company’s capability of refinancing its
debt, and could slow down the actual aggressive business
plan (USD 221 billion from 2015 to 2019). In order to recover its financial results and credibility, Petrobras recently announced to the market, a goal of selling USD 13
billion in assets to keep the focus on the pre salt oil cluster
in Brazil.
However, a good prospect is the new oil & gas bidding
rounds confirmed on the roadmap that could generate additional opportunities in the industry. This bid round is expected to take place during the second half of 2015, and
the government expects to raise close to BRL 5 billion
with the exploration rights, in both pre salt and post salt
areas.
By the end of 2014 there were 500 offshore supply vessels working in Brazilian waters of which 243 are Brazilian
flagged and 257 flying international flags. Approximately
50% of the total fleet, 248 vessels, are PSVs (included in
this number are PSVs converted to be dedicated Oil Spill
Response Vessels (OSRV), 19% are AHTS (96 vessels),
and 11% SUBSEA vessels (56 vessels). The rest is various type of vessels related to offshore services. From this
total fleet, approximately 88% are on long-term contracts
to Petrobras, 9% are working for international oil companies and independent companies and the remaining
vessels are trading the spot market.
Farstad Shipping’s fleet working in Brazil remained stable
and ended 2014 with 17 vessels. 14 vessels were on
long-term contracts to Petrobras (9 AHTS, 3 PSV and 2
SUBSEA). The Far Senator (AHTS) was working for
Karoon, an Australian E&P company. Far Sea (AHTS)
worked in the spot market for several clients. The OSCV
Far Samson, which is on a long term contract to Saipem,
has also been working in Brazil in 2014. The AHTS Far
Sagaris left Brazil in November 2014 due to the end of its
contract within Queiroz Galvão, an independent Brazilian
E&P company.
It is expected that Farstad Shipping might further increase its presence in the Brazilian market in 2015 with
new tenders from Petrobras due out in February and
March 2015 for AHTS and PSVs, and also due to ongoing
business with other charterers.
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FARSTAD SHIPPING ASA
69
THE NORTH-WEST EUROPEAN
MARKET
In 2014, 20.5% of the revenue in Farstad Shipping came from this region (20.3% in 2013). This is equivalent to a
­revenue of NOK 894.6 million (NOK 815.1 million).
The activity in the region shows continued growth. In
2014 the demand for supply vessels here increased by
4.7% up from 2.0% in 2013, and ended at a year average of 314 (300) boat-years. However, as can be seen
from the figures to the right, the 4th Quarter activity was
lower in 2014 compared with the 4th Quarter figures in
2013.
The average demand per quarter was: 1st Quarter 315
boat-years (292 in the 1st Quarter of 2013), 2nd Quarter
324 boat-years (307), 3rd Quarter 325 boat-years (302),
and 4th Quarter 297 boat-years (301). During 2014 the
number of supply vessels in North-West Europe
decreased by 3.5% (increase in 2013 by 4.5%). The
reduction in fleet was not high enough to have any effect
on the market, except for some weeks during 3rd Quarter.
The average utilization rate for 2014 was 90% (91%).
For the individual quarters, the utilization rate was: 1st
Quarter 88% (89%), 2nd Quarter 89% (92.5%), 3rd
Quarter 94% (91.5%), and 4th Quarter 88% (89.5%).
A general description of the rate level in 2014 is disappointing, and especially this is valid for the large AHTS.
Except for the 3rd Quarter the rate level was lower than
for 2013. The rates for the PSV fleet were, except for a
few weeks, lower than the year before. The rate development is shown in the figures on next page.
The demand is traditionally split between term and spot
activity. Of the total demand in 2014, 74% were term
contracts, which is lower than the year before (75%). The
70
business review 2014
-
farstad shipping asa
trend has been downward for the last years, and is
expected to drop also for 2015. This is the reflection of a
deteriorating market balance. In 2014, an average of
232 vessels were on term contracts compared to 226 in
2013.
The largest part of the term contracts (about 62%) are
associated with fields in production. In 2014, an average
of 143 boat-years were related to this type of activity
(140 in 2013). Forecast for the activity for 2015 shows
a 3% decrease in production related activity. The
demand connected to drilling activity was in average 42
boat-years (38). The demand connected to this type of
activity is expected to decrease significantly in 2014.
The activity connected to the development of fields and
infrastructure (pipelines, pumping stations and buoys)
represented a demand of 8 boat-years in 2014 (9). We
expect a similar level of this type of activity in 2015.
Another 39 (38) supply vessels on average have been
engaged in activities related to subsea construction,
flowlines etc. in 2014. The same level is expected for
2015.
The research company IHS forecasts a decrease of
approximately 3% in the total demand for supply vessels
in this region for 2015. Unless we see a substantial
reduction in the available fleet, the market in the region
will remain very soft during 2015. A reduction in the fleet
by 25-30 units is necessary in order to achieve a significant improvement of the market situation. This is not
likely to happen in the short term.
OFFSHORE SERVICE VESSELS NORTH-WEST EUROPE – SORTED BY OWNERS
OFFSHORE SERVICE VESSELS
Number of vessels
AHTS > 10 000 BHP and PSV > 2 000 DWT (20 largest)
Number of vessels
25
150
20
100
15
10
50
5
0
GOLDEN ENERGY
DEEP SEA SUPPLY
VROON
TIDEWATER
MÆRSK
SIEM OFFSHORE
BOURBON OFFSHORE
OLYMPIC
NORDIC AMERICAN
VIKING
ATLANTIC OFFSHORE
REM OFFSHORE
SOLSTAD
EIDESVIK
PSV
AHTS
HAVILA
0
MØKSTER
2015
DOF
2014
FARSTAD
2013
ISLAND OFFSHORE
2012
GULF
2011
PSV > 2000 DWT
AHTS > 10000 BHP
Source: IHS/Farstad
PSV
AHTS
NORTH SEA – AVERAGE WEEKLY SPOT RATES
AHTS 20,000+ BHP
NORTH SEA – AVERAGE WEEKLY SPOT RATES
PSV 900+ M2 DECK AREA
GBP ‘000
GBP ‘000
150
30
100
20
50
10
0
1Q
2Q
3Q
2013
0
1Q
4Q
2014
2Q
3Q
2013
2015
4Q
2015
2014
Source: Platou
NORTH SEA FLEET SUPPLY - DEMAND - UTILISATION
%
Boat-year
350
100
100
65
50
58
0
51
TERM DEMAND
SPOT DEMAND
TOTAL UTILISATION
TERM UTILISATION
E-JUN. 15
E-DEC. 15
72
DEC. 14
150
JUN. 14
79
DEC. 13
200
JUN. 13
86
DEC. 12
250
JUN. 12
93
JAN. 12
300
FLEET SIZE
Source: IHS/Farstad
BUSINESS REVIEW 2014
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FARSTAD SHIPPING ASA
71
06 | BUSINESS REVIEW 2014
FINANCIAL
INFORMATION
ANALYTICAL INFORMATION
The company’s shares are listed on Oslo Børs (FAR). In addition the Company has two bonds listed on Oslo Børs
(FAR03 and FAR04).
OPENNESS CREATES TRUST
One of Farstad Shipping’s values is to be Visible and
Transparent. A good and open dialogue with shareholders, bondholders, potential investors, analysts, media
and the financial markets in general is a logical consequence of this Value.
The company’s goal is to distribute to its stakeholders as
good and relevant information as possible about the
Company and its businesses. Simultaneous notification
to all parties is an important principle of our information
work. We want our financial information to appear clear
and recognizable. The intention is to give the shareholders and others the best possible understanding in order
to be able to evaluate and understand the underlying
values in the Company. The information is primarily distributed through the company’s quarterly reports and the
annual reports which are made available in press releases
and on the company’s website. All stock exchange
announcements are distributed through Nasdaq OMX.
The Company gives regular presentations in addition to
meetings with analysts and investors. The Company
gives priority to being available for analysts.
THE SHARES
The company’s share capital is NOK 39.0 million, distributed on 39 million shares with the nominal value of NOK
1.00 in one share class. The price of the shares was NOK
133.00 at the beginning of 2014. At the end of the year
the price was NOK 50.75. This represents a decline in
value of 61.8%. The highest closing price in 2014 was
137.00 on 12.02.2014, while the lowest was NOK
38.00 on 17.12.2014. The market capitalization (share
price multiplied by the number of shares) was NOK 1,979
million at the end of 2014.
The Company had 2,472 shareholders by 31.12.2014
compared to 2,190 shareholders at the end of 2013.The
number of foreign shareholders was 136 (111), and they
owned about 15,0% of the shares (about 19.5% in
2013). Foreign shareholders may own up to 33.3% of
the shares. In 2014, 6.7 million Farstad Shipping shares
were traded, compared to 5.2 million shares in 2013.
Throughout the year the shares have been traded 244
out of 250 trading days.
SHAREPRICE DEVELOPMENT
INDEX
400
300
200
100
0
2004
2005
2006
2007
FARSTAD SHIPPING ASA
2008
OSE10GI
2009
2010
2011
2012
2013
2014
OSEBX
Source: OSE
74
BUSINESS REVIEW 2014
-
FARSTAD SHIPPING ASA
THE BONDS
Farstad Shipping ASA has two bonds listed on Oslo
Børs. Nominal value of FAR03 is NOK 400 million, final
maturity is February 2017 and the interest terms are
NIBOR3M plus a margin of 4.20%. Nominal value of
FAR04 is NOK 1 billion, final maturity is May 2018 and
the interest terms are NIBOR3M plus a margin of
3.40%.
THE COMPANY'S 10 LARGEST SHAREHOLDERS
(PER 13 MARCH)
%
Tyrholm & Farstad AS
40.50
FLPS - PRINC ALL SEC STOCK SUB
7.84
Folketrygdfondet
4.93
Pareto Aksje Norge
4.32
Jan Henry Farstad
2.69
Sverre Andreas Farstad
2.56
Pareto Aktiv
2.38
The Northern Trust Co.
2.19
Odin Offshore
1.15
Pareto Verdi
1.13
A detailed overview of the company’s largest shareholders per
31.12.2014 is shown in Note 27 on page 50 in the Annual Report.
DIVIDEND PER SHARE
2007
2008
2009
DIVIDEND
2010
MARKET CAPITALIZATION
2011
2012
Dividend NOK
NOK billion
6
6
5
5
4
4
3
3
2
2
1
1
0
0
2013
2014
BOARD PROPOSAL DIVIDEND
2007
2008
2009
2010
2011
2012
2013
2014
MARKET CAPITALIZATION
business review 2014
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farstad shipping asa
75
THE ANNUAL GENERAL MEETING
Last year, the Annual General Meeting was held on
14.05.2014. Dividends were set to NOK 3.00 per share
with payment to shareholders on 27 May. Shareholders,
registered as share owners in the shares protocol on the
date of the Annual General Meeting, were entitled to
receive dividends. The shares were traded excluding dividends on 15.05.2014. The Annual General Meeting
gave the Board of Directors extended authorisation to
increase share capital by issuing up to 3.9 million shares
without preferential rights for existing shareholders. The
Board was also authorised to buy up to 3.9 million of the
company’s own shares. The authorisations are valid until
the Annual General Meeting in 2015.
SEGMENT INFORMATION
The company’s activities are divided into two equal operating segments based on regions and type of vessels.
The operating segment based on region is divided into
North-West Europe, Brazil and Asia Pacific, and the operating segment based on type of vessels is divided into
platform supply vessel services (PSV), anchor handling
tug supply vessel services (AHTS) and subsea services
(SUBSEA).
Note 3 in the Annual Report gives detailed financial information sorted by segments. The main figures relating to
our geographical segments are summarized on page 77.
The Board will propose a dividend for 2014 of NOK 3.00
per share to the Annual General Meeting on 12 May
2015. It will also be proposed that the above mentioned
authorisations are renewed. Dividends are expected to
be paid on 27 May 2015.
EBIT PER SHARE
BOOK VALUE PER SHARE
NOK
NOK
20
150
15
100
10
50
5
0
2007
2008
2009
2010
2011
2012
2013
2014
SHARE PRICE
BOOK VALUE PER SHARE
76
business review 2014
-
0
2010
2011
2012
2013
2014
INCL. GAIN ON SALES
EXCL. GAIN ON SALES
farstad shipping asa
Share Price
EXCL. GAIN ON SALES
INCL. GAIN ON SALES
PROFIT PER OPERATING SEGMENT REGION 2014
Asia
Pacific
Brazil
North-West
Europe
Other
sectors
1 902 408
1 407 693
894 570
164 267
(1 266 688)
(880 721)
(505 349)
(89 732)
635 720
526 972
389 221
74 535
(313 527)
(241 106)
(194 795)
(106 715)
322 194
285 866
194 426
(32 181)
EBITDA, per cent
33.4 %
37.4 %
43.5 %
45.4 %
EBIT, per cent
16.9 %
20.3 %
21.7 %
(19.6) %
NOK 1 000
Freight income and other income
Operation and administration cost
Operating profit before depreciation (EBITDA)
Depreciation/write-down
Operating profit (EBIT)
FINANCIAL DEVELOPMENT
%
NOK mill.
100
4000
75
3000
50
2000
25
1000
0
0
2007
2008
OPERATING INCOME
EBITDA
EBIT
2009
2010
2011
2012
2013
2014
EBITDA-MARGIN
EBIT-MARGIN
business review 2014
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farstad shipping asa
77
FINANCIAL COVENANTS
SENIOR UNSECURED BONDS
In the Bond agreements the following financial covenants
remain in force as long as any amount is outstanding
under the Bond. The financial covenants applies for
Farstad Shipping ASA on a consolidated basis, and they
are tested quarterly and reported to the Bond Trustee in
writing.
Capitalization: The Value Adjusted Equity Ratio shall be
minimum twenty five per cent (25.00%) at all times.
“Value Adjusted Equity Ratio” means Value Adjusted
Equity over Value Adjusted Total Assets. “Value Adjusted
Total Assets” means the book value of all assets, adjusted
for the difference between the book value of the Farstad
Fleet and the Vessel Market Value.
Consolidated Free Liquid Assets: The value of the Consolidated Free Liquid Assets shall at all times be at least
equal to 50% of the scheduled instalments (any balloon
payments excluded) on long term debt falling due within
the next 12 months.
Working Capital: The Working Capital shall be positive at
all times. “Working capital” means the Current Assets less
Current Liabilities. In this connection “Current liabilities”
means the aggregate amount of the consolidated current liabilities reduced by the aggregate amount of 50%
of the scheduled installments (any balloon payments excluded) on long term debt falling due within the next 12
months and 100 % of the scheduled balloon repayments
of long term debt falling due within the next 12 months.
business review 2014
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farstad shipping asa
FS ASA GROUP
FINANCIAL COVENANT
31.12.14
30.06.14
FS ASA GROUP
FINANCIAL COVENANT
30.09.14
31.03.14
31.12.13
30.09.13
30.06.13
31.03.13
31.12.12
1,0
31.12.14
1,5
50
30.09.14
100
20
30.06.14
30
31.12.13
2,0
31.03.14
2,5
150
30.09.13
200
40
30.06.13
50
31.03.13
NOK
31.12.12
%
FS ASA GROUP
FINANCIAL COVENANT
78
Working capital
%
31.12.14
30.09.14
31.03.14
Liquid assets vs current portion
of short term debt
30.06.14
30.09.13
31.12.13
31.03.13
30.06.13
31.12.12
Value adjusted equity
VESSEL MARKET VALUE
Farstad Shipping obtains market value estimates for the
fleet twice per year, at the end of the year and at mid-year.
The market value of a vessel means the fair market value
of a vessel being the arithmetic average of the valuations
of the vessel determined by three Norwegian shipbrokers;
Fearnley Offshore, Seabrokers and Platou Offshore. The
valuations are given on the basis that vessels are immediately available for sale in the market at arm’s length on
normal commercial terms as between a willing buyer and
a willing seller, on an “as is, where is” basis, free of any
existing charter or other contract of employment and/or
pool arrangement. The shipbrokers have quoted their values as high and low value estimates per vessel and all values are in NOK.
VAE 31.12.14
Total
(NOK MILL)
Market value vessels
18 685.7
Book value vessels
15 781.9
Excess value vessels
2 903.8
Book value equity
6 624.8
VAE
9 528.5
Book value ratio
34.2 %
VAE ratio
42.7 %
At the end of 2014, average value estimate for the
Farstad fleet was estimated to NOK 18.7 billion. The
fleet’s market value has decreased by 5.4% in 2014
(decrease of 3.9% in 2013). The difference between
the vessel market value and the book value of the fleet is
NOK 2.9 billion. Based on the value estimates per
31.12.2014, the Value Adjusted Equity Ratio (VAER)
is calculated to 42.7% (49.9%).
If the brokers’ average “high” values are used, the VAER is
44.1%, while using the average “low” values gives a VAER
of 41.3%. A 10% decrease in average market values
lead to a VAER of 37.5%.
These calculations do not take into consideration any
potential excess values in the Company other than those
apparent from the difference between the vessels’ market value and their book value.
INTEREST BEARING DEBT
At the end of the year the gross interest bearing debt
including bonds was NOK 11.32 billion which gives a difference between the vessel market value and the debt of
NOK 7.24 billion. This represents a potential for additional borrowing. The net interest bearing debt was NOK
9.07 billion.The company’s repayment profile is presented below.
REPAYMENT PROFILE
VALUE OF VESSELS VS. MORTGAGE DEBT
NOK mill.
NOK mill.
1750
15000
1500
1250
10000
1000
750
5000
500
250
0
INSTALLMENTS
BALLOONS
2 half-year -20
1 half-year -20
2 half-year -19
1 half-year -19
2 half-year -18
1 half-year -18
2 half-year -17
0
1 half-year -17
2014
2 half-year -16
2013
1 half-year -16
MARKET VALUES
BOOKED VALUES
MORTGAGES
2012
2 half-year -15
2011
1 half-year -15
2010
BONDS
GUARANTEE RENEWALS
BUSINESS REVIEW 2014
-
FARSTAD SHIPPING ASA
79
KEY FIGURES
FARSTAD SHIPPING ASA - GROUP
(NOK MILL)
2014
2013
2012
2011
2010
4 368.9
4 007.2
3 714.0
3 584.9
3 327.7
15.0
7.0
(10.3)
16.9
1.1
(2 742.5)
(2 490.3)
(2 397.6)
(2 183.4)
(1 942.7)
Profit and loss account
Operating income ex. sale of fixed assets
Profit (loss) on sale of fixed assets
Operating expenses
1 641.5
1 523.9
1 306.2
1 418.4
1 386.2
Depreciation and write-down
(856.1)
(654.4)
(575.9)
(544.8)
(516.2)
Gain from gradual acquisition
–
–
–
70.4
–
785.3
869.5
730.3
944.1
869.9
(792.3)
(589.6)
(405.6)
(413.7)
(377.4)
(7.0)
280.0
324.7
530.3
492.5
16 225.7
14 696.7
13 127.4
12 365.0
11 685.6
3 168.8
2 840.4
2 477.8
2 227.2
2 992.6
19 394.5
17 537.1
15 605.2
14 592.2
14 678.2
Operating profit before depreciation (EBITDA)
Operating profit (EBIT)
Net financial items
Pre-tax profit
Balance sheet
Fixed assets
Current assets
Total assets
6 624.8
6 878.0
6 775.8
6 820.2
6 582.4
10 296.9
8 890.6
6 806.5
6 018.8
6 413.8
Current liabilities
2 472.8
1 768.5
2 022.8
1 753.2
1 682.0
Net interest bearing debt (1)
9 067.5
7 718.2
6 288.2
5 385.5
4 988.8
2 194.9
1 879.7
1 567.1
1 448.9
2 269.7
696.0
1 071.9
455.0
474.0
1 310.6
1 103.1
1 018.4
917.9
1 072.4
1 082.3
Equity capital
Non-current liabilities
Liqudity
Liquid assets
Working capital (2)
Cash flow (3)
Capital
19 394.5
17 537.1
15 605.2
14 592.2
14 678.2
Equity capital
6 624.8
6 878.0
6 775.8
6 820.2
6 582.4
Equity ratio (4)
34.2 %
39.2 %
43.4 %
46.7 %
44.8 %
Value adjusted equity ratio (5)
42.7 %
49.9 %
55.1 %
57.8 %
55.9 %
Book value of vessels, incl. spare parts
15 837.7
14 033.2
12 234.4
11 593.7
11 370.7
Mortgage debt vessels (6)
10 000.3
8 242.1
7 129.3
6 192.3
6 608.5
Total assets
Fleet
Definitions:
(1) Interest bearing debt- interest bearing liquid assets.
(2) Current assets - short-term liabilities.
(3) Pre-tax profit - taxes paid + depreciation/write-down + change in revalutation of liabilities - gain from gradual acqusition.
(4) Equity capital as % of total assets.
(5) Value adjusted equity as % of total value adjusted assets, for calculation method see page 79.
(6) Debt excl. bonds
80
business review 2014
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farstad shipping asa
2014
Liquidity ratio (1)
2013
2012
2011
2010
1.28
1.61
1.22
1.27
1.78
EBITDA- margin excl. sale of fixed assets
37.2 %
37.9 %
35.5 %
39.1 %
41.6 %
EBIT- margin excl. sale of fixed assets (2)
17.6 %
21.5 %
19.9 %
23.9 %
26.1 %
Return on Equity (ROE) (3)
(0.1 %)
3.8 %
4.6 %
8.5 %
6.7 %
5.2 %
6.3 %
5.8 %
7.9 %
7.8 %
Return on capital employed (ROCE) (4)
Number of vessels per 31 December
Number of employees per 31 December
62
59
56
56
58
2 200
2 200
2 080
2 000
1 900
LTIF (5)
0.73
0.77
0.41
1.38
1.51
TRCF (6)
2.32
3.22
6.51
6.33
7.01
PER SHARE
2014
2013
2012
Share capital (NOK million)
2011
2010
39.0
39.0
39.0
39.0
39.0
137.00
145.00
181.50
191.00
175.00
Share price low
38.00
117.50
121.50
126.00
128.50
Share price at 31.12
50.75
133.00
134.50
151.00
175.00
Change in share price 01.01-31.12
(61.8 %)
(1.1 %)
(10.9 %)
(13.7 %)
36.2 %
Market capitalization (7) (NOK mill.)
1 979.3
5 187.0
5 245.5
5 889.0
6 825.0
Dividend per share
3.00
3.00
3.00
5.00
4.00
Average number of outstanding shares (million)
39.0
39.0
39.0
39.0
39.0
Profit per share incl. sale of fixed assets (8)
(0.21)
6.67
8.00
14.58
11.07
Profit per share excl. sale of fixed assets
(0.60)
6.49
8.26
14.14
11.04
Cash flow per share including sales profit (9)
28.29
26.11
23.54
27.50
27.75
Cash flow per share excluding sales profit
27.90
25.93
23.80
27.06
27.72
169.87
176.36
173.74
174.88
168.78
Share price high
Booked equity per share
Definitions:
(1) Liquid assets divided by short-term debt.
(2) Excl. gain from gradual acquisition in 2011.
(3) Profit divided by average booked equity.
(4) EBIT divided by total average booked equity and net interest bearing debt.
(5) Lost Time Injury Frequency per one million hours worked.
(6) Total Recordable Case Frequency per one million hours worked.
(7) Total number of shares x share price at 31.12.
(8) Net profit, divided by average number of shares.
(9) Pre-tax profit - taxes paid + depreciation + change in revaluation of liabilities, divided by average number of shares outstanding.
business review 2014
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farstad shipping asa
81
07 | BUSINESS REVIEW 2014
FLEET
OVERVIEW
AHTS
FLEET OVERVIEW (AT 12.03.15)
FAR SIRIUS
YEAR BUILT: 2014 DESIGN: UT 731 CD OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 24400
DWT: 3954 DECK-AREA: 755 M2 CHARTERER: WOODSIDE EMPLOYMENT: MAR. 2016 + OPT.
2015
2016
2017
2018
2019
FAR SIGMA
YEAR BUILT: 2014 DESIGN: UT 731 CD OWNER: FARSTAD SUPPLY AS REGISTER: NOR BHP: 24400
DWT: 3954 DECK-AREA: 755 M2 EMPLOYMENT: LAY UP
2015
2016
2017
2018
2019
FAR STATESMAN
YEAR BUILT: 2013 DESIGN: UT 731 CD OWNER: FARSTAD SUPPLY AS REGISTER: NOR BHP: 24400
DWT: 3954 DECK-AREA: 755 M2 EMPLOYMENT: LAY UP
2015
2016
2017
2018
2019
FAR SENATOR
YEAR BUILT: 2013 DESIGN: UT 731 CD OWNER: FARSTAD SUPPLY AS REGISTER: NOR BHP: 24400
DWT: 3954 DECK-AREA: 755 M2 CHARTERER: KAROON EMPLOYMENT: MAR. 2015 + OPT.
2015
2016
2017
2018
2019
FAR SARACEN
YEAR BUILT: 2010 DESIGN: UT 731 CD OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 24400
DWT: 3954 DECK-AREA: 755 M2 CHARTERER: CHEVRON AUSTRALIA EMPLOYMENT: MAY 2017
2015
2016
2017
2018
2019
FAR SHOGUN
YEAR BUILT: 2010 DESIGN: UT 731 CD OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 24400
DWT: 3990 DECK-AREA: 755 M2 CHARTERER: CHEVRON AUSTRALIA EMPLOYMENT: MAY 2017
2015
2016
2017
2018
2019
FAR SAGARIS
YEAR BUILT: 2009 DESIGN: UT 731 CD OWNER: FARSTAD SUPPLY AS REGISTER: IOM BHP: 23700
DWT: 3912 DECK-AREA: 755 M2 EMPLOYMENT: LAY UP
2015
2016
2017
2018
2019
FAR SCORPION
YEAR BUILT: 2009 DESIGN: UT 731 CD OWNER: FARSTAD SUPPLY AS REGISTER: NOR BHP: 23700
DWT: 3934 DECK-AREA: 755 M2 EMPLOYMENT: SPOT
2015
2016
2017
2018
2019
FAR SCIMITAR
YEAR BUILT: 2008 DESIGN: UT 712 L OWNER: FARSTAD SUPPLY AS REGISTER: IOM BHP: 14700
DWT: 2913 DECK-AREA: 540 M2 CHARTERER: BHP EMPLOYMENT: JAN. 2016 + OPT.
2015
84
business review 2014
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farstad shipping asa
2016
2017
2018
2019
UNDER CONSTRUCTION
CONTRACT
AHTS 31 VESSELS
CHARTERER’S OPTION
Specially designed vessels for anchor handling and towing
SPOT MARKET
offshore platforms, barges and production modules/vessels.
FAR SABRE
YEAR BUILT: 2008 DESIGN: UT 712 L OWNER: FARSTAD SUPPLY AS REGISTER: IOM BHP: 14700
DWT: 2350 DECK-AREA: 540 M2 CHARTERER: INPEX EMPLOYMENT: FEB. 16 + OPT.
2015
2016
2017
2018
2019
FAR SAPPHIRE
YEAR BUILT: 2007 DESIGN: UT 732 CD OWNER: FARSTAD SUPPLY AS REGISTER: NOR BHP: 27500
DWT: 4583 DECK-AREA: 800 M2 EMPLOYMENT: SPOT
2015
2016
2017
2018
2019
FAR SOUND
YEAR BUILT: 2007 DESIGN: UT 712 L OWNER: FARSTAD SUPPLY AS REGISTER: IOM BHP: 14700
DWT: 2350 DECK-AREA: 540 M2 CHARTERER: BHP EMPLOYMENT: JAN. 16 + OPT.
2015
2016
2017
2018
2019
BOS TURQUESA
YEAR BUILT: 2007 DESIGN: UT 722 L OWNER: FARSTAD SHIPPING S.A. REGISTER: BRA BHP: 18000
DWT: 2640 DECK-AREA: 475 M2 EMPLOYMENT: SPOT
2015
2016
2017
2018
2019
FAR STRAIT
YEAR BUILT: 2006 DESIGN: UT 712 L OWNER: FARSTAD SHIPPING PTE. LTD. REGISTER: SGP BHP: 14700
DWT: 2965 DECK-AREA: 540 M2 CHARTERER: INPEX EMPLOYMENT: FEB. 2016 + OPT.
2015
2016
2017
2018
2019
FAR STREAM
YEAR BUILT: 2006 DESIGN: UT 712 L OWNER: FARSTAD SUPPLY AS REGISTER: IOM BHP: 14700
DWT: 3068 DECK-AREA: 540 M2 CHARTERER: INPEX EMPLOYMENT: APR. 2018 + OPT.
2015
2016
2017
2018
2019
FAR SWORD
YEAR BUILT: 2006 DESIGN: UT 712 L OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 14700
DWT: 3024 DECK-AREA: 510 M2 CHARTERER: IMPEX EMPLOYMENT: MAR. 2018 + OPT.
2015
2016
2017
2018
2019
BOS TURMALINA
YEAR BUILT: 2006 DESIGN: UT 722 L OWNER: FARSTAD SHIPPING S.A. REGISTER: BRA BHP: 14500
DWT: 2721 DECK-AREA: 450 M2 CHARTERER: PETROBRAS EMPLOYMENT: OCT. 2016 + OPT.
2015
2016
2017
2018
2019
BOS TOPAZIO
YEAR BUILT: 2005 DESIGN: UT 728 L OWNER: FARSTAD SHIPPING S.A. REGISTER: BRA BHP: 12240
DWT: 2882 DECK-AREA: 560 M2 CHARTERER: PETROBRAS EMPLOYMENT: AUG. 2018 + OPT.
2015
2016
2017
2018
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AHTS
FLEET OVERVIEW (AT 12.03.15)
LADY ASTRID
YEAR BUILT: 2003 DESIGN: UT 712 OWNER: P/R INTERNATIONAL OFFSHORE SERVICES ANS REGISTER: NIS
BHP: 12240 DWT: 2656 DECK-AREA: 510 M2 EMPLOYMENT: SPOT
2015
2016
2017
2018
2019
LADY CAROLINE
YEAR BUILT: 2003 DESIGN: UT 712 OWNER: P/R INTERNATIONAL OFFSHORE SERVICES ANS REGISTER: NIS
BHP: 12240
DWT: 2656 DECK-AREA: 510 M2 CHARTERER: INPEX EMPLOYMENT: JAN. 2016 + OPT.
2015
2016
2017
2018
2019
FAR SALTIRE
YEAR BUILT: 2002 DESIGN: UT 728 L OWNER: FARSTAD MARINE AS REGISTER: IOM BHP: 16320
DWT: 2195 DECK-AREA: 490 M2 CHARTERER: CONOCO AUSTRALIA EMPLOYMENT: MAR 2015 + OPT.
2015
2016
2017
2018
2019
LADY GURO
YEAR BUILT: 2001 DESIGN: UT 719 OWNER: FARSTAD SHIPPING PTE. LTD. REGISTER: NIS BHP: 5450
DWT: 2048 DECK-AREA: 403 M2 CHARTERER: SHELL PHILIPPINES EMPLOYMENT: OCT. 2016 + OPT.
2015
2016
2017
2018
2019
FAR SCOUT
YEAR BUILT: 2001 DESIGN: UT 722 L OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 16825
DWT: 2806 DECK-AREA: 570 M2 CHARTERER: PETROBRAS EMPLOYMENT: FEB. 2016 + OPT.
2015
2016
2017
2018
2019
FAR SANTANA
YEAR BUILT: 2000 DESIGN: UT 730 OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 19200
DWT: 2964 DECK-AREA: 500 M2 CHARTERER: PETROBRAS EMPLOYMENT: JUL. 2018
2015
2016
2017
2018
2019
FAR SOVEREIGN
YEAR BUILT: 1999 DESIGN: UT 741 OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 25200
DWT: 3961 DECK-AREA: 620 M2 CHARTERER: PETROBRAS EMPLOYMENT: MAR. 2015 + OPT.
2015
2016
2017
2018
2019
FAR SENIOR
YEAR BUILT: 1998 DESIGN: UT 722 L OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 16800
DWT: 2784 DECK-AREA: 585 M2 CHARTERER: PETROBRAS EMPLOYMENT: FEB. 2016 + OPT.
2015
2016
2017
2018
2019
LADY SANDRA
YEAR BUILT: 1998 DESIGN: KMAR 404 OWNER: FARSTAD SHIPPING PTE. LTD. REGISTER: SGP BHP: 16800
DWT: 2725 DECK-AREA: 540 M2 EMPLOYMENT: SPOT
2015
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UNDER CONSTRUCTION
CONTRACT
AHTS 31 VESSELS
CHARTERER’S OPTION
Specially designed vessels for anchor handling and towing
SPOT MARKET
offshore platforms, barges and production modules/vessels.
FAR SAILOR
YEAR BUILT: 1997 DESIGN: UT 722 OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 18000
DWT: 2681 DECK-AREA: 540 M2 CHARTERER: PETROBRAS EMPLOYMENT: NOV. 2017
2015
2016
2017
2018
2019
FAR FOSNA
YEAR BUILT: 1993 DESIGN: UT 722 OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 14400
DWT: 2418 DECK-AREA: 570 M2 EMPLOYMENT: SPOT
2015
2016
2017
2018
2019
FAR GRIP
YEAR BUILT: 1993 DESIGN: UT 722 OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 14400
DWT: 2418 DECK-AREA: 570 M2 EMPLOYMENT: SPOT
2015
2016
2017
2018
2019
FAR SKY (SOLD MARCH 17 2015)
YEAR BUILT: 1991 DESIGN: ME 303 II OWNER: - REGISTER: - BHP: 13400
DWT: 1920 DECK-AREA: 540 M2 CHARTERER: - EMPLOYMENT: -
2015
2016
2017
2018
2019
FAR SEA
YEAR BUILT: 1991 DESIGN: ME 303 II OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 13200
DWT: 1920 DECK-AREA: 540 M2 EMPLOYMENT: SPOT
2015
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2017
2018
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PSV
FLEET OVERVIEW (AT 12.03.15)
FAR SYGNA
YEAR BUILT: 2014 DESIGN: VARD 1 07 OWNER: FARSTAD SUPPLY AS REGISTER: NOR BHP: 10445
DWT: 5700 DECK-AREA: 1170 M2 CHARTERER: STATOIL EMPLOYMENT: SEPT. 2020 + OPT.
2015
2016
2017
2018
2019
FAR SUN
YEAR BUILT: 2014 DESIGN: VARD 1 07 OWNER: FARSTAD SUPPLY AS REGISTER: NOR BHP: 10445
DWT: 5635 DECK-AREA: 1170 M2 CHARTERER: STATOIL EMPLOYMENT: JULY 2020 + OPT.
2015
2016
2017
2018
2019
FAR STARLING
YEAR BUILT: 2013 DESIGN: PSV 08 CD OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 9996
DWT: 4000 DECK-AREA: 810 M2 CHARTERER: WOODSIDE EMPLOYMENT: SEPT. 2015 + OPT.
2015
2016
2017
2018
2019
FAR SITELLA
YEAR BUILT: 2013 DESIGN: PSV 08 CD OWNER: FARSTAD SHIPPING PTE. LTD. REGISTER: SGP BHP: 9996
DWT: 4000 DECK-AREA: 810 M2 CHARTERER: SHELL AUSTRALIA EMPLOYMENT: JUN. 2014 + OPT.
2015
2016
2017
2018
2019
FAR SPICA
YEAR BUILT: 2013 DESIGN: PSV 08 CD OWNER: FARSTAD SUPPLY AS REGISTER: IOM BHP: 9996
DWT: 4000 DECK-AREA: 810 M2 EMPLOYMENT: SPOT
2015
2016
2017
2018
2019
FAR SOLITAIRE
YEAR BUILT: 2012 DESIGN: UT 754 WP OWNER: FARSTAD SUPPLY AS REGISTER: NOR BHP: 11281
DWT: 6336 DECK-AREA: 1023 M2 EMPLOYMENT: SPOT
2015
2016
2017
2018
2019
FAR SKIMMER
YEAR BUILT: 2012 DESIGN: PSV 08 CD OWNER: FARSTAD SHIPPING PTE. LTD. REGISTER: NIS BHP: 9996
DWT: 4000 DECK-AREA: 810 M2 CHARTERER: SHELL AUSTRALIA EMPLOYMENT: SEPT. 15 + OPT.
2015
2016
2017
2018
2019
FAR SCOTSMAN
YEAR BUILT: 2012 DESIGN: PSV 08 CD OWNER: FARSTAD MARINE AS REGISTER: IOM BHP: 9996
DWT: 4000 DECK-AREA: 810 M2 CHARTERER: STATOIL EMPLOYMENT: MARCH 2015 + OPT.
2015
2016
2017
2018
2019
FAR SERVER
YEAR BUILT: 2010 DESIGN: HY832 CD OWNER: FARSTAD MARINE AS REGISTER: IOM BHP: 7500
DWT: 4000 DECK-AREA: 800 M2 EMPLOYMENT: SPOT
2015
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UNDER CONSTRUCTION
PSV 26 VESSELS
CONTRACT
Specially designed vessel for transporting supplies and
CHARTERER’S OPTION
equipment to and from offshore installations. These vessels
SPOT MARKET
transport general cargo, primarily in containers.
FAR SERENADE
YEAR BUILT: 2009 DESIGN: UT 751 CD OWNER: FARSTAD SUPPLY AS REGISTER: NOR BHP: 9465
DWT: 5944 DECK-AREA: 1003 M2 CHARTERER: STATOIL EMPLOYMENT: APR. 2015
2015
2016
2017
2018
2019
FAR SEARCHER
YEAR BUILT: 2008 DESIGN: UT 751 E OWNER: FARSTAD SUPPLY AS REGISTER: NOR BHP: 9465
DWT: 5127 DECK-AREA: 1091 M2 EMPLOYMENT: SPOT
2015
2016
2017
2018
2019
FAR SEEKER
YEAR BUILT: 2008 DESIGN: UT 751 E OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 9465
DWT: 4905 DECK-AREA: 1091 M2 CHARTERER: INPEX EMPLOYMENT: MAY 2016 + OPT.
2015
2016
2017
2018
2019
FAR SPIRIT
YEAR BUILT: 2007 DESIGN: VS 470 MK II OWNER: FARSTAD MARINE AS REGISTER: IOM BHP: 6530
DWT: 3624 DECK-AREA: 725 M2 CHARTERER: CHEVRON EMPLOYMENT: APR. 2015 + OPT.
2015
2016
2017
2018
2019
FAR SWAN
YEAR BUILT: 2006 DESIGN: VS 470 MK II OWNER: FARSTAD SHIPPING PTE. LTD. REGISTER: SGP BHP: 5500
DWT: 3628 DECK-AREA: 704 M2 EMPLOYMENT: SPOT
2015
2016
2017
2018
2019
FAR SPLENDOUR
YEAR BUILT: 2003 DESIGN: P 106 OWNER: FARSTAD SUPPLY AS REGISTER: IOM BHP: 7760
DWT: 3503 DECK-AREA: 691 M2 CHARTERER: PETERSON EMPLOYMENT: APR. 2015 + OPT.
2015
2016
2017
2018
2019
FAR SYMPHONY
YEAR BUILT: 2003 DESIGN: P 105 OWNER: FARSTAD SUPPLY AS REGISTER: NOR BHP: 9930
DWT: 4929 DECK-AREA: 951 M2 CHARTERER: CONOCOPHILLIPS EMPLOYMENT: APR. 2017 + OPT.
2015
2016
2017
2018
2019
LADY MELINDA
YEAR BUILT: 2003 DESIGN: UT 755 OWNER: FARSTAD SHIPPING PTE. LTD. REGISTER: SGP BHP: 5450
DWT: 2777 DECK-AREA: 567 M2 CHARTERER: CONOCOPHILLIPS EMPLOYMENT: DEC. 2015
2015
2016
2017
2018
2019
LADY GRETE
YEAR BUILT: 2002 DESIGN: UT 755 L OWNER: FARSTAD SHIPPING PTE. LTD. REGISTER: SGP BHP: 5450
DWT: 3264 DECK-AREA: 678 M2 CHARTERER: CONOCO EMPLOYMENT: MAR. 2015 + OPT.
2015
2016
2017
2018
2019
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PSV
FLEET OVERVIEW (AT 12.03.15)
LADY GRACE
YEAR BUILT: 2001 DESIGN: UT 755 OWNER: P/R INTERNATIONAL OFFSHORE SERVICES ANS REGISTER: IOM
BHP: 5450 DWT: 2936 DECK-AREA: 615 M2 CHARTERER: WOODSIDE EMPLOYMENT: MAY 2015
2015
2016
2017
2018
2019
FAR STAR
YEAR BUILT: 1999 DESIGN: UT 745 OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 9600
DWT: 4403 DECK-AREA: 817 M2 CHARTERER: PETROBRAS EMPLOYMENT: AUG. 2017 + OPT.
2015
2016
2017
2018
2019
FAR SUPPLIER
YEAR BUILT: 1999 DESIGN: VS 483 OWNER: FARSTAD MARINE AS REGISTER: IOM BHP: 6700
DWT: 4709 DECK-AREA: 896 M2 CHARTERER: ESSO AUSTRALIA EMPLOYMENT: MAY 2016 + OPT.
2015
2016
2017
2018
2019
FAR STRIDER
YEAR BUILT: 1999 DESIGN: VS 483 OWNER: FARSTAD MARINE AS REGISTER: IOM BHP: 6700
DWT: 4709 DECK-AREA: 902 M2 CHARTERER: PETROBRAS EMPLOYMENT: AUG. 2017 + OPT.
2015
2016
2017
2018
2019
FAR SUPPORTER
YEAR BUILT: 1996 DESIGN: UT 750 OWNER: FARSTAD MARINE AS REGISTER: IOM BHP: 7200
DWT: 4680 DECK-AREA: 956 M2 CHARTERER: PETROBRAS EMPLOYMENT: MAY 2016
2015
2016
2017
2018
2019
FAR SERVICE
YEAR BUILT: 1995 DESIGN: UT 745 OWNER: FARSTAD MARINE AS REGISTER: IOM BHP: 7200
DWT: 4683 DECK-AREA: 965 M2 CHARTERER: ADTI EMPLOYMENT: MAR. 2015
2015
2016
2017
2018
2019
FAR SCANDIA
YEAR BUILT: 1991 DESIGN: UT 705 OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 6700
DWT: 3100 DECK-AREA: 868 M2 CHARTERER: ESSO AUSTRALIA EMPLOYMENT: JUL. 2015 + OPT.
2015
2016
2017
2018
2019
FAR SUPERIOR
YEAR BUILT: 1990 DESIGN: UT 705 L OWNER: FARSTAD MARINE AS REGISTER: IOM BHP: 6600
DWT: 3796 DECK-AREA: 988 M2  EMPLOYMENT: LAY UP
2015
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SUBSEA
UNDER CONSTRUCTION
CONTRACT
CHARTERER’S OPTION
FLEET OVERVIEW (AT 12.03.15)
SPOT MARKET
FRAMEWORK AGREEMENT
SUBSEA 4 VESSELS + 3 NEWBUILDS
Vessels specially designed for operations at great depths,
installation and maintenance of seabed facilities.
FAR 838 TBN
YEAR BUILT: 2016 DESIGN: VARD 3 17 OWNER: FARSTAD CONSTRUCTION AS REGISTER: NOR BHP: DWT: - DECK-AREA: 875 M2 CHARTERER: TECHNIP NORGE AS EMPLOYMENT: MAR. 2022 + OPT.
2015
2016
2017
2018
2019
FAR SENTINEL TBN
YEAR BUILT: 2015 DESIGN: VARD 3 07 OWNER: FARSTAD CONSTRUCTION AS REGISTER: NIS BHP: DWT: - DECK-AREA: 1800 M2 CHARTERER: – EMPLOYMENT: –
2015
2016
2017
2018
2019
FAR SLEIPNER TBN
YEAR BUILT: 2015 DESIGN: VARD 3 07 OWNER: FARSTAD CONSTRUCTION AS REGISTER: NIS BHP: 22794
DWT: 9200 DECK-AREA: 1800 M2 CHARTERER: TECHNIP EMPLOYMENT: SEP. 2016 INCL. OPT.
2015
2016
2017
2018
2019
FAR SAMSON
YEAR BUILT: 2009 DESIGN: UT 761 CD OWNER: FARSTAD CONSTRUCTION AS REGISTER: IOM BHP: 47625
DWT: 6103 DECK-AREA: 1450 M2 CHARTERER: SAIPEM EMPLOYMENT: JUN. 2015 + OPT.
2015
2016
2017
2018
2019
FAR SWIFT
YEAR BUILT: 2003 DESIGN: UT 755 OWNER: FARSTAD SUPPLY AS REGISTER: NIS BHP: 5450
DWT: 3084 DECK-AREA: 588 M2 CHARTERER: PETROBRAS EMPLOYMENT: OCT. 2016 + OPT.
2015
2016
2017
2018
2019
FAR SAGA
YEAR BUILT: 2001 DESIGN: UT 745 L OWNER: FARSTAD SUPPLY AS REGISTER: NOR BHP: 10900 DWT:
3054 DECK-AREA: 510 M2 + 150 M2 CHARTERER: PETROBRAS EMPLOYMENT: MAY 2020 + OPT.
2015
2016
2017
2018
2019
FAR SCOTIA
YEAR BUILT: 2001 DESIGN: UT 755 OWNER: FARSTAD CONSTRUCTION AS REGISTER: IOM BHP: 5450
DWT: 3022 DECK-AREA: 468 M2 CHARTERER: PETROBRAS EMPLOYMENT: NOV. 2016 + OPT.
2015
2016
2017
2018
2019
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GLOSSARY
APAC
Asia Pacific
ASA
Public Limited Company in Norway
BHP
Brake Horsepower (measure of an engine’s horsepower)
Charterer
The company paying for the assignment
Charter Party (CP) Contract for chartering a vessel
92
CIRR
Commercial Interest Reference Rate
CO2
Carbon Dioxide
DNV GL
Det Norske Veritas Germanischer Lloyd. Classification company.
Controlling and approving the vessels technical condition, security and
quality according to the company’s own rules and the national laws
DP
Dynamic Positioning
DP HIL
Dynamic Positioning Hardware in Loop
DWT
Deadweight Tonnage (measure of how much a vessel can safely carry)
EBIT
Operating profit
EBITDA
Operating profit before depreciation
ECDIS
Electronic Chart Display and Information System
FAR
The company code (ticker) at the Oslo Stock Exchange
FSOSC
Farstad Shipping Offshore Simulation Centre
GDP
Gross Domestic Product
GT
Gross Tonnage
HSEQ
Health, Safety, Environment and Quality
IFRS
International Financial Reporting Standards
IHS
Inventory of Hazardous Substances
IMR
Inspection, Maintenance and Repair
IMS
Integrated Management System
ISM
International Safety Management code
ISO
International Standards Organization
ISPS
International Ship and Port Facility Security code. International framework to detect/ assess security threats and take preventive measures
against security incidents affecting ships or port facilities used in
international trade
LTIF
Lost Time Injury Frequency
NCR
Non-Conformance Reports
NIS
Norwegian International Ship Register
NOG
Norwegian Oil and Gas Association
NOR
Norwegian Ordinary Ship Register
NOx
Nitrogen Oxides
OHSAS
OSC
Occupational Health & Safety Advisory Services
OSCV
Offshore Subsea Construction Vessel
PLSV
Pipe Lay Support Vessel
SEEMP
Ship Energy Efficiency Management Plan
SOx
Sulphur Oxides
STCW
TRCF
Standards of Training, Certification and Watchkeeping
UNGC
United Nations Global Compact
VAE
Value Adjusted Equity
BUSINESS REVIEW 2014
Offshore Simulator Centre AS - Aalesund
Total Recordable Case Frequency
-
FARSTAD SHIPPING ASA
Design:
Havnevik AS
Photo/illustrations:
Available in digital version:
www.farstad.com/en/annualreport2014
Tony Hall, Vegard Fimland, Harald Walderhaug, Ståle Wattø,
Farstad Shipping archive, Fuglefjellet, Havnevik, Global Maritime.
www.farstad.com
FARSTAD SHIPPING ASA
PO. Box 1301 Sentrum, 6001 Aalesund, Norway
Tel: +47 70 11 75 00, e-mail: post.aalesund@farstad.com
FARSTAD SHIPPING LTD.
Farstad House, Badentoy Avenue, Badentoy Park, Portlethen, Aberdeen AB12 4YB, Scotland
Tel: +44 1 224 784 000, e-mail: post.aberdeen@farstad.com
FARSTAD SHIPPING (INDIAN PACIFIC) PTY. LTD.
Melbourne:
GPO Box 5111, Melbourne Victoria, 3001 Australia
Tel: +61 3 9685 1500, e-mail: post.melbourne@farstad.com
Perth:
Level 9, 16 St Georges Terrace Perth WA 6000 Australia
Tel: +61 8 9325 9333, e-mail: post.melbourne@farstad.com
FARSTAD SHIPPING OFFSHORE SIMULATION CENTRE PTY. LTD.
PO Box 1375 Bibra Lake DC, Bibra Lake WA 6965 Perth Australia
Tel: +61 8 9494 5600, e-mail: info@farstadsimulation.com
FARSTAD SHIPPING PTE. LTD.
78 Shenton Way, #19-02, Singapore 079120
Tel: +65 6240 4500, e-mail: post.singapore@farstad.com
FARSTAD SHIPPING S.A.
Macaé:
Rua Abilio Moreira de Miranda, No. 606, Imbetiba, Macaé, RJ CEP 27915-250, Brazil
Tel: +55 22 2105 1900, e-mail: post.macae@farstad.com
Rio de Janeiro:
Av. Rio Branco, 01 - Sala 1509 - Centro CEP 20.090-003, Rio de Janeiro - RJ, Brazil
Tel: +55 21 2138 2000, e-mail: post.macae@farstad.com