CH Offshore sinks with $54.6m loss for full year

A vessel impairment cost hit $49.3m.

CH Offshore (CHO) struggles to stay afloat after it reported a full-year loss of $54.6m (US$40.1m).

According to its financial statement, it was a result of a one-time vessel impairment charge of $49.3m (US$36.2m).

Moreover, group revenue decreased by 34% due to lower vessel charter rates and utilisation. Average vessel utilisation rate fell from 79% to 73%.

CHO said, "Despite the uncertainty ahead, there are indications that the worst may be over. Crude oil price have likely seen their low for the current cycle. With the rebalancing of costs across the offshore oil and gas industry, new offshore oil and gas development is becoming profitable again, even at current oil prices. In short, the seeds of the ultimate recovery in the sector have been planted."