Norway’s World Wide Supply Unable to Make Debt Interest Payment

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November 26, 2015

World Wide Supply’s PSV World Diamond. Photo credit: Damen Shipyards

ReutersOSLO, Nov 26 (Reuters) – Norwegian offshore supply vessel owner World Wide Supply will not be able to make a scheduled interest payment on its debt on Nov. 27, the shipping firm said on Thursday.

Companies serving the oil industry are suffering from weak demand as oil companies cut back on investments and exploration to preserve cash following the fall in oil prices.

World Wide Supply said in its third-quarter report that it had bond debts of $146.7 million at the end of that quarter and has previously said it was in talks with its lenders regarding possible actions.

The firm, which does not have listed shares, did not specify the size of the missed interest payment.

Four of the company’s six vessels are currently out of work, giving it an average fleet utilisation of just 32.3 percent in October, it said earlier this month.

Two of its vessels have been laid up in Norway since early September, while two have been out of work since Brazilian oil firm Petrobras terminated contracts around the same time.

The two remaining vessels are still on contract with Petrobras. (Reporting by Terje Solsvik. Editing by Jane Merriman)

(c) Copyright Thomson Reuters 2015.

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