OPERATIONS
In 2007 we have seen significant improvement in the international markets and a good spot market in the North Sea.
The Company has three vessels operating in the North Sea spot market where rates are dependent on the current market. The market is cyclical and currently strong. The remaining vessels operate in the West Indies (3 vessels), Brazil (1 vessel), West Africa (3 vessels) and Asia/Middle East (3 vessels). The company has during the 2nd quarter obtained three years time charters with ENI Congo for “Sea Trout” and “Sea Angler” with startup in the 3rd quarter. The charterer ENI has an option to extend both contracts with one year.
Rates have increased significantly for longer term time charters internationally which will contribute positively to our revenues as vessels commence on new charters. Rates in the North Sea are expected to be strong in the 3rd quarter due to an expected higher activity level.
Operating expenses show a stable pattern. Vessel deliveries and drydocking expenses explain the increase in operating expenses from 1st to 2nd quarter.
