Fairstar Operates with Loss in Third Quarter,but Looks Forward to Brighter Future
Fairstar Heavy Transport N.V. (FAIR) released its third quarter results to the market. During the quarter Fairstar was awarded over USD 40 million in new contracts for marine transportation services in the next two years. Fairstar now has contracts in place totalling over USD 220 million in total value. The company booked an operating loss of USD 2.6 million in the quarter. Cash on hand totals USD 6.8 million.
Fairstar indicated it is currently in discussions with a Nordic/Dutch banking syndicate to re-finance its current secured loan facility. Philip Adkins CEO provided some further insight on the announcement, “Fairstar is well positioned for the future. Our “Red Box Strategy” has been further validated by new multi-voyage, high value contracts and extensions of existing contracts. We have slugged it out in the spot market this year and have won contracts that will generate the cash flow we require to meet our current financial obligations as well as continued to invest in our business. In early 2012 we will have escaped from the unpredictable and volatile economics of the spot market and begin to book predictable and consistent revenues every month for at least three to five years. Our future will be wedded to the growth of Australia as a major supplier of LNG and the ongoing demand for this energy source from the industrial nations in East Asia.
We are disappointed to post an operating loss this quarter and do not expect 2011 to be a profitable year for Fairstar. However, we have maintained the financial strength and stability necessary to preserve and protect the underlying value of our business and positioned it to create sustainable value for our shareholders for many years to come.”
Source: Fairstar, October 13, 2011