Stavanger-based offshore services provider Endur Energy Solutions, a subsidiary of Endur, will file for bankruptcy, on the back of weak results.
The parent company Endur in the fourth quarter of 2019 reported a total turnover of NOK 122 million and a negative operating result before depreciation and amortization (EBITDA) of NOK 11 million.
"The weak quarterly figure is related to the company Endúr Energy Solutions, which alone recorded a loss of NOK 15 million in the fourth quarter. The board of directors of this company decided yesterday to resolve a petition for bankruptcy,” Endur said Friday.
Endur Energy Solutions provides maintenance, modification, construction, installation, fabrication and conversion of oil and gas installations both onshore and offshore sectors.
CEO Hans Petter Eikeland said he strongly regretted the situation with the offshore maintenance and modification company.
“Endur Energy Solutions AS joined the group one year ago, and had several framework agreements related to maintenance and modification assignments in the offshore market.
"Unfortunately, one has failed to materialize these framework agreements to provide satisfactory activity and profitable operation. Nor has the company succeeded in acquiring new assignments of importance from either the on- or offshore market during this year. All in all, this has imposed a burden on the company that no longer defends the basis for continued operations”, says Eikeland
He said: "This company has over time focused on alternative structural and financial solutions that could provide a positive operation in the company, but without success. Significant deterioration in operating results during the fourth quarter has made this work very challenging."
He said: "In addition, the new corporate management that took office in November 2019 considers the value of the company’s order reserves to be significantly lower than estimated by the previous management. In sum, the basis for further operations was not found to be in place”, says Eikeland.
The bankruptcy in the subsidiary Endúr Energy Solutions AS means that Energi Industrier AS and Energy PMAE AS, both subsidiaries of Endúr Energy Solutions AS, will dissolve from the group.
In total, this will give a significant loss of revenue in the Group’s Energy segment, Endur said. The other two segments in the Group, Maritime and Akva, will not be affected by the bankruptcy, Endur added.