DOF Group laid off 742 employees last year as part of cost-cutting measures introduced to help the Norwegian vessel owner offset a drop off in demand.
The group, whose DOF Subsea subsidiary has an office in Aberdeen, said the market had been challenging throughout 2016 with low activity in all regions.
However, group returned to black for the full year 2016, recording pre-tax profits of £39million, an improvement on a deficit of £32million the previous year.
During the fourth quarter, the business sold two vessels, won several new contracts in South America, and completed its refinancing.
Its fleet utilisation was 82% during the period.
It operated three vessels on the North Sea spot market in that time
DOF said in its financial report: “The market is expected to be challenging in 2017, which will increase the risk for lower utilisation for the group’s vessels compared to 2016, hence a risk for a further deterioration of the vessel values.
“The board of directors and the administration consider the uncertainty related to the market development, and thereby the appraisal of the values of the group’s vessels, equipment and investments in joint ventures, to be considerably higher than normal.”
DOF owned 66 vessels with another four under construction at year end 2016.
It had six vessels in lay-up at December 31.
Recommended for you
Read the latest opinion pieces from our Energy Voice columnists
- With shale oil production like this, who needs Trump?
- OPEC’s plan for the future is to resurrect the past
- Opinion: Shell may hold clue to future in corner of Cobham
- Opinion: How can the government reboot the capacity market?
- Opinion: Service sector could do with a ‘long-term champion’ at government level