FARSTAD SHIPPING ASA QUARTERLY REPORT

Transcription

1 FARSTAD SHIPPING ASA QUARTERLY REPORT

2 MARKET VALUE OPERATING INCOME OPERATING PROFIT (EBIT) 2

3 61 VESSELS 1 1NEWBUILD VISION 3

4 VALUES, VISION & GOALS 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 VALUE PRODUCTIVE VISIBLE AND TRANSPARENT RELIABLE CORPORATE VISION BETTER BY FAR We intend to develop the company further by abiding our Values so that we can maintain a leading, compet itive position in those markets in which we are present. BUSINESS CONCEPT We shall be a leading provider of specialized offshore tonnage to the international oil and gas industry. OBJECTIVES Our overall goal is to have zero injuries to people, zero harm to the environ ment 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 share holders, employees and society in general. We have a long-term chartering strategy. 4

5 FARSTAD SHIPPING ASA GLOBAL SUMMERY NUMBER OF VESSELS SORTED BY REGION 2 30 AHTS 25 PSV 6 SUBSEA + 1 NEWBUILD EMPLOYEES IN TOTAL GENDER DISTRIBUTION 73 OFFSHORE ONSHORE % 36% 13% 4% ASIAN PACIFIC BRAZIL OPERATING INCOME (EXCL. PROFIT/LOSS ON SALES) NORTH-WEST EUR0PE OTHER 3,076 NOK MILL 5

6 QUARTERLY REPORT OPERATING INCOME Excl. profit/loss on sales NOK million st quarter 2 nd quarter 3 rd quarter 4 th quarter EBITDA Excl. profit/loss on sales NOK million st quarter 2 nd quarter 3 rd quarter 4 th quarter EBIT Excl. profit/loss on sales and gain from gradual acquisition NOK million st quarter 2 nd quarter 3 rd quarter 4 th quarter TRCF - LTIF 10 TRCF LTIF TRCF Total Recordable Case Frequency per one million hours worked LTIF Lost Time Injury Frequency per one million hours worked *) 2015 shows frequencies year to date *) 0 6

7 Farstad Shipping achieved an operating income of NOK million for the 3 rd quarter. The operating profit (EBIT) was NOK 73.6 million. The profit after taxes was negative NOK million including an unrealized currency loss of NOK million. THIS IS FARSTAD SHIPPPING Farstad Shipping is a leading supply shipping company within our defined segment of large and more advanced offshore supply vessels. The company is value driven with focus on safety, quality and efficiency in our services. The company s fleet consists of 61 vessels: 25 PSV, 30 AHTS and 6 SUBSEA vessels. Farstad Shipping has currently one SUBSEA newbuild under construction for delivery in November The company s operations are managed from Aalesund, Melbourne, Perth, Singapore, Macaé and Rio de Janeiro with a total of approx. 2,100 employees engaged onshore and offshore. At the moment, 15 vessels are stationed in Brazil, 17 vessels in North-West Europe, 26 in the Asian Pacific region and three vessels in Africa. RESULTS FOR THE 3 RD QUARTER 2015 Farstad Shipping achieved an operating income of NOK million for the 3 rd quarter (NOK 1,211.9 million for the same period in 2014). The operating costs for the period were NOK million (NOK million). The reduced operating costs are a result of cost saving measures, despite the increased number of vessels and higher exchange rates compared to Operating profit before depreciations and impairments (EBITDA) was NOK million (NOK million). The operating profit (EBIT) was NOK 73.6 million (NOK million) after depreciations of NOK million (NOK million). Net finance was negative NOK million (negative NOK million). Currency gains of NOK 19.9 million were booked during the 3 rd quarter (gain NOK 10.9 million). Further an unrealized currency loss of NOK million (loss NOK 77.3 million) was booked due to the adjustment of the company s long-term liabilities in foreign currency. The unrealized currency loss is mainly due to a weakening of NOK and BRL during the quarter. Profit after taxes was negative NOK million (positive NOK 91.2 million). The Group s cash flow*) for the period was NOK million compared to NOK million for the same period in A negative change in market value of currency and interest hedging instruments, NOK million (negative NOK 11.2 million) was recognized against other comprehensive income and has reduced equity. RESULTS AS PER The operating income at was NOK 3,071.2 million incl. loss from sale of a vessel of NOK 4.6 million (NOK 3,272.2 million incl. gain from sale of vessels of NOK 15.0 million). Operating costs were NOK 2,038.5 million (NOK 2,037.6 million). Operating profit before depreciations and impairments (EBITDA) was NOK 1,032.7 million (NOK 1,234.6 million). Depreciations and impairments were NOK million (NOK million). Of this, impairments were NOK million (NOK 0 million). EBIT was NOK million (NOK million). Net finance was negative NOK 1,001.9 million (negative NOK million). Unrealized currency loss was NOK million (loss NOK 58.1 million). A realized currency loss of NOK 13.1 million was booked during the period (gain of NOK 27.3 million). Profit after taxes was negative NOK million (positive NOK million). The Group s cash flow*) for the period was NOK million compared to NOK million for the same period in FINANCING AND CAPITAL STRUCTURE In the balance sheet at , interest-bearing mortgage debt totaled NOK 12,267.5 million (NOK 10,564.3 million at ). Of the company s interest-bearing debts, 67.0% was in NOK, 25.1% in USD, 2.0% in GBP, 5.4% in AUD and 0.5% in EUR. Interest-bearing current assets at were NOK 1,537.6 million (NOK 1,212.0 million). The Group s booked equity at was NOK 5,522.6 million (NOK 6,994.9 million) corresponding to NOK (NOK ) per share. Equity ratio was 28.6% (37.6%). *) Cash flow is defined as pre-tax profit + depreciation, impairments and deferred maintenance +/- change on revaluation of long-term liabilities in foreign currency. 7

8 QUARTERLY REPORT CHANGES TO THE FLEET The subsea-/construction vessels Far Sleipner (Vard 3 07) and Far Sentinel (Vard 3 07) were delivered from Vard Langsten 26 March and 7 July respectively. The long term financing of the vessels was arranged by Eksportkreditt Norge AS, DNB, Swedbank and GIEK. Far Sky (AHTS 1991, ME 303 II, 13,382 BHP) was sold 17 March. The sale gave a booked loss of NOK 4.6 million in the 1 st quarter. Far Superior (PSV 1990, UT 705 L, 3,796 DWT) was sold 7 May. The sale resulted in a booked loss of NOK 15.0 million in the 1 st quarter recognised as impairment of the vessel s book value. Lady Guro (AHTS 2001, UT 719, 5,450 BHP) was sold 28 October. The vessel was sold at book value. NEW CONTRACTS Technip awarded Farstad Shipping a contract for the subsea vessel Far Sleipner. This implies utilization of the vessel for approximately 11 months, divided into two fixed periods. Including mobilization and demobilization, it is possible for Technip to utilize the vessel for up to 16 months. Commencement was in July Queiroz Galvão Exploração E Produção S.A. awarded AHTS Far Sagaris a two-year contract to support their drilling program in Brazil. Commencement of the contract will take place between December 2015 and January The charterer has an option to extend the contract by up to two additional years. The vessel is currently undergoing some upgrades before departing for Brazil. Saipem S.A. awarded CSV Far Samson a contract of nine months duration to support their activity in Brazil. Commencement was in July Furthermore, Saipem has awarded Far Samson a one-year contract from October The contract may be extended by up to two years. An international oil company has awarded a contract to PSV Far Spica to support their activity on the UK shelf. Commencement was in August, and the duration is 14 months with six monthly options. PSV Far Solitaire was awarded a contract by an international oil company for operations on the Norwegian Continental Shelf. Commencement is expected to be in November 2015, and the firm contract period ends mid-december The charterer has the option to extend the contract by up to two additional years. Charter contracts after end of the quarter: Esso Australia has declared their option to extend the contract for PSV Far Supplier for three years. Commencement of the contract will be in direct continuation from current firm contract. Woodside Energy Ltd. has declared their first six month option period for the AHTS Far Sirius. The contract makes the vessel firm until August 2016 with a further 2x6 months options remaining. Woodside Energy Ltd. has extended the contract for PSV Lady Grace for a period of up to 240 days. PSV Far Starling, PSV Far Skimmer and PSV Far Spirit have been awarded contracts for Woodside Energy Ltd. to support their campaigns offshore Korea and Myanmar. The vessels are secured employment until January Petrobras has notified Farstad Shipping that they intend to cancel the contract for PSV Far Strider. Cancellation is expected to take place mid-november. Subtec S.A. de C.V. has awarded CSV Far Sentinel a three year contract with further up to three years options for delivery of light construction work, IMR and other subsea related activities in the Gulf of Mexico. Commencement of the contract will be within December CONTRACT COVERAGE The contract coverage of the Farstad Fleet is approximately 67% for the remainder of 2015 (59% excl. options), and approximately 54% for 2016 (37% excl. options). Total backlog exclusive options is approx. NOK 6.3 billion. HEALTH, SAFETY AND ENVIRONMENT Farstad Shipping s goals within health, safety and environment are to operate without injury to people, harm to the environment and damage to assets. The Company works actively on several levels to make employees aware of this goal. An important part of the HSE management is recording, 8

9 reporting and assessment of various HSE data. A number of measurement indicators have been established for this purpose. Further, this will document quantitative development over time, as well as strengthen the decision indicators for systematic improvements. Two of the measurement indicators the company utilizes are the lost time injury frequency (LTIF) and total recordable case frequency (TRCF), see graph on page 6. 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. The lost time injury frequency was 0.49 (three incidents) by the end of 3 rd quarter. Hence, the lost time injury frequency has improved compared to last year (0.73 in 2014). The company has a strong focus on reducing the number of injuries, and measures are implemented to achieve this. The total recordable case frequency was 2.61 in the third quarter. This is an improvement compared to the first and second quarter, but unfortunately somewhat higher than in 2014 (2.32). THE MARKET Our general market outlook has not changed significantly in the last quarter. All regions and markets are characterized by pressure on rate levels due to substantial tonnage surplus and expected rate reductions from the oil companies. The market challenges for the industry have resulted in an increasing number of offshore service vessels being laid up in the quarter. Low oil price and the strong focus on cost reductions in the offshore industry means that there is not expected to be any growth in the activity level offshore in Hence, there is also not expected to be any short-term improvements in the market conditions in our key markets. The contracting activity has stopped, but there is still a significant number of offshore vessels on order. Aalesund 10 November 2015 Board of Directors 9

10 FARSTAD SHIPPING ASA (NOK 1000) GROUP PROFIT AND LOSS ACCOUNT 3 rd quarter 3 rd quarter Freight income and other income Profit (loss) on sale of fixed assets - - (4 581) Total operating income Operating expenses vessels ( ) ( ) ( ) ( ) ( ) Administration (68 538) (71 860) ( ) ( ) ( ) Total operating expenses ( ) ( ) ( ) ( ) ( ) Operating profit before depreciation (EBITDA) Ordinary depreciation ( ) ( ) ( ) ( ) ( ) Impairment - - ( ) - ( ) Operating profit (EBIT) Financial income Financial expenses ( ) ( ) ( ) ( ) ( ) Agio/(disagio), realised (13 081) Agio/(disagio), unrealised ( ) (77 342) ( ) (58 148) ( ) Net financial expenses ( ) ( ) ( ) ( ) ( ) Pre-tax profit ( ) ( ) (6 998) Taxes (8 666) (5 780) (25 411) (8 153) (1 343) Profit ( ) ( ) (8 341) Profit / diluted profit per share (NOK) (11.16) 2.34 (22.03) 5.57 (0.21) Cash flow per share (NOK) Average number of outstanding shares STATEMENT OF COMPREHENSIVE INCOME 3 rd quarter 3 rd quarter Profit ( ) ( ) (8 341) Items not to be reclassified to profit/loss in subsequent periods: Actuarial gains and losses pensions (29 025) Change in deferred tax pensions Items to be reclassified to profit/loss in subsequent periods: Change in foreign exchange contracts and interest swaps ( ) (11 241) (73 157) (34 759) ( ) Change in deferred tax (352) Translation effects foreign operations (35 897) (40 329) (55 548) Total other comprehensive income ( ) (51 922) ( ) ( ) Comprehensive income for the period ( ) ( ) ( ) 10

11 FARSTAD SHIPPING ASA (NOK 1000) GROUP BALANCE SHEET ASSETS Fixed assets: Goodwill Vessels etc Contracts newbuilds Deferred tax benefit Other long-term receivables Shares Total fixed assets Current assets: Account receivables, freight income Other short-term receivables Currency and interest swap derivatives Liquid assets Total current assets Total assets EQUITY AND LIABILITIES Equity: Paid-in capital Retained earnings Total equity Liabilities: Non-current liabilities: Provision for liabilities Deferred tax Currency and interest swap derivatives Interest-bearing debt and leasing obligations Total non-current liabilities Current liabilities: Accounts payable Currency and interest swap derivatives Taxes payable Other current liabilities Current portion of interest-bearing debt Total current liabilities Total liabilities Total equity and liabilities

12 FARSTAD SHIPPING ASA (NOK 1000) GROUP STATEMENT OF CASH FLOW 3 rd quarter 3 rd quarter Cash flow from operating activity Sale of fixed assets Investment in fixed assets and contracts newbuilds ( ) ( ) ( ) ( ) ( ) Other investment activity Cash flow from investment activity ( ) ( ) ( ) ( ) ( ) New long-term debt Repayment of debt ( ) ( ) ( ) ( ) ( ) Dividend paid - - ( ) ( ) ( ) Interest costs ( ) ( ) ( ) ( ) ( ) Cash flow from finance activity Net changes in liquidity in the period ( ) (78 531) ( ) ( ) Net currency exchange differences subsidiaries (16 226) (1 111) (204) (25 070) Cash and cash equivalents at the beginning of the period *) Cash and cash equivalents at the end of the period *) *) Ex. shares, equity certificates and bonds CHANGE IN EQUITY 3 rd quarter 3 rd quarter Equity at the beginning of the period Comprehensive income ( ) ( ) ( ) Dividend payment - - ( ) ( ) ( ) Equity at the end of the period

13 NOTES TO THE INTERIM REPORT (NOK 1000) GROUP NOTE 1 - ACCOUNTING PRINCIPLES / ESTIMATES The interim report has been prepared in accordance with today s International Financial Reporting Standards (IFRS) and interpretations, and the IAS 34 standard for interim reporting. All accounting principles used are in accordance with principles used in the last annual report. The financial statements for the third quarter of 2015 are unaudited. There has been no changes in estimates, except impairment of vessels (see note 6), that could materially influence the interim result or balance sheet. Reference is made to the Annual Report 2014 for further information. NOTE 2 - SEGMENT INFORMATION OPERATING INCOME *) 3 rd quarter 3 rd quarter AHTS PSV SUBSEA Other income Total North-West Europe Brazil Asian Pacific Other segments Others Total *) excl. sale of vessel OPERATING PROFIT (EBIT) *) 3 rd quarter 3 rd quarter AHTS PSV (3 772) (77 257) SUBSEA Other income 347 (3 456) (4 464) (5 896) (18 662) Total North-West Europe (73 499) ( ) Brazil Asian Pacific Other segments (13 521) Others 347 (3 456) (4 464) (5 896) (18 662) Total *) excl. sale of vessel NOTE 3 - KEY FIGURES EBITDA-margin excl. sale of fixed assets 33.7 % 37.4 % 37.2 % EBIT-margin excl. sale of fixed assets 5.6 % 20.5 % 17.6 % Equity ratio 28.6 % 37.6 % 34.2 % Booked equity per share, NOK Working capital

14 NOTES TO THE INTERIM REPORT (NOK 1000) GROUP NOTE 4 - SHARES, SHAREHOLDERS AND DIVIDEND The company s shares have during the quarter been traded between NOK and NOK 14.70, and the share price was NOK at the end of the quarter. The share price at values the company to approx. NOK 0.6 billion. THE COMPANY S 20 LARGEST SHAREHOLDERS at Number of shares Owner s share in % Tyrholm & Farstad AS FLPS - Princ All Sec Pareto Aksje Norge Folketrygdfondet Jan Henry Farstad Sverre Andreas Farstad Forsvarets Personellservice Pareto AS MP Pensjon Swedbank Norge Nordnet Bank AB Wenaas Kapital AS Fidelity GR TST Citibank BKK Pensjonskasse Ulsmo Finans AS J.P. Morgan Bank Luxemburg Nortura Konsernpensjonskasse Sparebanken Møre Gjensidige Forsikring Total 20 largest shareholders Other shareholders Total number of shares NOTE 5 - RELATED PARTIES The company s largest shareholder is Tyrholm & Farstad AS in Aalesund with a holding of 40.5% and is defined as a related party. Farstad Shipping ASA has a lease agreement for the main office premises in Aalesund with Tyrholm & Farstad AS applicable for the period The agreement represents an annual cost of NOK 4.3 mill. New office premises are under construction at Skansekaia, Aalesund and a leasing agreement for the new premises has been signed. Relocation is expected to take place during the first quarter of The lessor is Skansekaia Utvikling AS, where Tyrholm & Farstad AS holds 33.3%. In addition Farstad Shipping ASA has purchased cargo freight and customs clearance services from Tyrholm & Farstad AS. 14

15 NOTES TO THE INTERIM REPORT (NOK 1000) GROUP NOTE 6 - VESSELS, OTHER FIXED ASSETS AND NEWBUILDS Other Vessels Total vessels Contracts Total fixed assets etc. newbuilds fixed assets Acquisition cost 1 January Additions Disposals (2 086) ( ) ( ) ( ) ( ) Translations differences (5 594) ( ) ( ) - ( ) 30 September Accumulated depreciation 1 January Depreciation for the year Impairment for the year Disposals (2 055) ( ) ( ) - ( ) 30 September Recognized value deferred maintenance Recognized value NOTE 7 - MORTGAGES AND OTHER LONG TERM LIABILITIES The Group s loan agreements contain financial covenants related to equity ratio, liquid assets and working capital. All companies within the Group have fulfilled their financial covenants in the third quarter of Repayments of debt amounted to NOK million in the third quarter (NOK million in 3Q 2014). Net new long term debt raised was NOK million during the quarter (NOK million during 3Q 2014). Net interest bearing debt as per Interest bearing debt and leasing obligations Interest bearing current assets ( ) ( ) ( ) Net interest bearing debt and leasing obligations Long-term liabilities as per 30 September 2015 were distributed as follows: 67.0% in NOK (74.9% as per ), 25.1% (11.4%) in USD, 2.0% (6.2%) in GBP, 5.4% (7.0%) in AUD and 0.5% (0.5%) in EUR. New debt raised in the third quarter was in USD. NOTE 8 - EVENTS AFTER THE BALANCE SHEET DATE AHTS Lady Guro (2001, UT 719, BHP) was sold 28 October. The vessel was sold at book value. There have not been any further events after the balance sheet date that would have affected the financial statements essentially. 15

16 AHTS FLEET GALLERY Far Sirius Far Sigma Far Statesman Far Senator Far Saracen Far Shogun Far Sagaris Far Scorpion Far Scimitar Far Sabre Far Sapphire Far Sound BOS Turquesa Far Strait Far Stream Far Sword BOS Turmalina BOS Topàzio Lady Astrid Lady Caroline Far Saltire Far Scout Far Santana Far Sovereign Far Senior Lady Sandra Far Sailor Far Fosna Far Grip Far Sea Owner: SUP = Farstad Supply AS IOS = P/R International Offshore Services ANS MAR = Farstad Marine AS FSS = Farstad Shipping Pte. Ltd. CON = Farstad Construction AS FSB = Farstad Shipping S.A. 16

17 AHTS FLEET EMPLOYMENT CONTRACT OVERVIEW AT Vessel name Design Year built BHP Owner Employment *) at FAR SIRIUS UT 731 CD SUP Sept opt. FAR SIGMA UT 731 CD SUP Lay up FAR STATESMAN UT 731 CD SUP Lay up FAR SENATOR UT 731 CD SUP Nov. 15 FAR SARACEN UT 731 CD SUP May 17 FAR SHOGUN UT 731 CD SUP May 17 FAR SAGARIS UT 731 CD SUP Dec opt. FAR SCORPION UT 731 CD SUP Spot FAR SCIMITAR UT 712 L SUP Feb opt. FAR SABRE UT 712 L SUP Feb opt. FAR SAPPHIRE UT 732 CD SUP Spot FAR SOUND UT 712 L SUP Feb opt. BOS TURQUESA UT 722 L FSB Spot FAR STRAIT UT 712 L FSS Feb opt. FAR STREAM UT 712 L SUP April 18 + opt. FAR SWORD UT 712 L SUP March 18 + opt. BOS TURMALINA UT 722 L FSB Oct opt. BOS TOPÀZIO UT 728 L FSB Aug opt. LADY ASTRID UT IOS Spot LADY CAROLINE UT IOS Feb opt. FAR SALTIRE UT 728 L MAR Spot FAR SCOUT UT 722 L SUP Feb opt. FAR SANTANA UT SUP July 18 FAR SOVEREIGN UT SUP Lay up FAR SENIOR UT 722 L SUP Feb opt. LADY SANDRA KMAR FSS Spot FAR SAILOR UT SUP Nov. 17 FAR FOSNA UT SUP Spot FAR GRIP UT SUP Spot FAR SEA ME 303 II SUP Spot *) Certain freight contracts contain clauses which give the charterer the right to cancel the contract. Contract Charterer s option Framework Agreement Under construction 17

18 PSV/SUBSEA FLEET GALLERY Far Sygna Far Sun Far Starling Far Sitella Far Spica Far Solitaire Far Skimmer Far Scotsman Far Server Far Serenade Far Searcher Far Seeker Far Spirit Far Swan Far Splendour Far Symphony Lady Melinda Lady Grete Lady Grace Far Star Far Supplier Far Strider Far Supporter Far Service Far Scandia Far 838 tbn Far Sentinel Far Sleipner Far Samson Far Swift Far Saga Far Scotia 18

19 PSV/SUBSEA FLEET EMPLOYMENT CONTRACT OVERVIEW AT Vessel name Design Year built DWT Owner FAR SYGNA PSV SUP Sept opt. FAR SUN PSV SUP July 20 + opt. FAR STARLING PSV 08 CD SUP Dec opt. FAR SITELLA PSV 08 CD FSS Dec opt. FAR SPICA PSV 08 CD SUP Oct. 16 +opt. FAR SOLITAIRE UT 754 WP SUP Dec opt. FAR SKIMMER PSV 08 CD FSS Dec opt. FAR SCOTSMAN PSV 08 CD MAR Spot FAR SERVER HY 832 CD MAR Lay up FAR SERENADE UT 751 CD SUP Lay up FAR SEARCHER UT 751 E SUP Lay up FAR SEEKER UT 751 E SUP May 16 + opt. FAR SPIRIT VS 470 Mk II MAR Dec opt. FAR SWAN VS 470 Mk II FSS Spot Employment *) at FAR SPLENDOUR P SUP April 16 + opt. FAR SYMPHONY P SUP April 17 + opt. LADY MELINDA UT FSS Dec. 15 LADY GRETE UT 755 L FSS Lay up LADY GRACE UT IOS Dec opt. FAR STAR UT SUP Aug opt. FAR SUPPLIER VS MAR May 19 FAR STRIDER VS MAR Nov. 15 FAR SUPPORTER UT MAR May 16 FAR SERVICE UT MAR Lay up FAR SCANDIA UT SUP Lay up Vessel name Design Year built FAR 838 tbn VARD CON March 22 + opt. FAR SENTINEL VARD CON Nov opt. FAR SLEIPNER VARD CON Sept. 16 incl. opt. FAR SAMSON UT 761 CD CON Nov opt FAR SWIFT UT 755 L SUP Sept opt. FAR SAGA UT 745 L SUP May 20 + opt. FAR SCOTIA UT CON Nov opt. BHP Owner Employment *) at *) Certain freight contracts contain clauses which give the charterer the right to cancel the contract. Contract Charterer s option Framework Agreement Under construction 19

20 FARSTAD SHIPPING ASA PO. Box 1301 Sentrum, 6001 Aalesund, Norway Tel: , FARSTAD SHIPPING (INDIAN PACIFIC) PTY. LTD. Melbourne: GPO Box 5111, Melbourne Victoria, 3001 Australia Tel: , post.melbourne@farstad.com Perth: PO Box 3169 East Perth, WA, 6892 Australia Tel: +61 (08) , 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 (08) , info@farstadsimulation.com FARSTAD SHIPPING PTE. LTD. 78 Shenton Way, #19-02, Singapore Tel: , post.singapore@farstad.com FARSTAD SHIPPING S.A. Macaé: Rua Abilio Moreira de Miranda, 606 Parque Valentina Miranda, Macaé, RJ CEP , Brazil Tel: , post.macae@farstad.com Rio de Janeiro: Av. Rio Branco, 01 - Sala Centro CEP , Rio de Janeiro - RJ, Brazil Tel: , post.macae@farstad.com