Fleet utilization for the FJORD and FJELL was at 85% for the Quarter. Fairstar safely executed marine transportation contracts for DSME, Hercules Offshore and Northern Offshore.
Ingmar den Blanken, Treasurer of Fairstar commented: “In spite of the challenges we faced in a market that continues to be characterized by deep discounting by our competitors, we achieved an operating profit of USD 72 thousand. Overall profitability was set back by the weakness of the US Dollar versus the Norwegian Krone at the closing date of our accounts. Liquidity was enhanced by the successful placement of 8.1 million shares. Fairstar continues to explore various options available to us in the banking and bond markets to ensure that our cost of capital is appropriate for our funding needs."
Willem Out, COO, added: "The First Quarter of 2012 reflected the dangers of exposure to the spot market for marine heavy transport. All of us at Fairstar are now preparing the Company to enter the "Red Box" stage of our Company's evolution. The FJORD is now on contract with Gorgon and the value of predictable, high margin earnings in the coming years will validate our decision to invest in the FORTE and FINESSE as well as confirming the value of our Company that has not been reflected in the recent offer by our competitor from Breda."