Norway’s Sevan Marine suspended its 2014 dividend Wednesday after booking a $15.9 million fourth quarter net loss, down from a profit of $1.5 million during the same period in 2013.
The rig builder saw revenue slip to $25.2 million from $31.2 million booked during the fourth quarter 2013.
The company reported an operating loss of $4.8 million, down from a profit of $0.9 million the year before.
Sevan’s total annual revenue held steady at $102.4 million in 2014 from $102.6 million in 2013.
The company also took a $5.9 million goodwill impairment charge tied to its 51 percent stake in Norway-based engineering firm Kanfa due to “weak results in 2014.”
Sevan will suspend its regular dividend for 2014 although an extraordinary dividend is being considered for the second half of 2015 if the company’s balance sheet allows for it.
The company said it expects low oil prices and reduced drilling activity to curb demand for its rigs.
Sevan has already seen a number of projects be either postponed or delayed and said that despite a “a general optimistic outlook for the FPSO/FSO market” it expects to sign fewer new licensing agreements this year.
“2015 will be a challenging year and we have started a substantial cost reduction exercise, as well as initiated a strategic review, in order to meet both present and future requirements to succeed,” Sevan Marine CEO Carl Lieungh said.