Fred Olsen Energy: tough times

The owner of Harland and Wolff has long warned that the Belfast shipyard was hurting its profits.

Earlier this year, Norway's Fred Olsen Energy warned that its profits would be hurt in the second quarter because of the uncertain situation at the yard.

The group - a supplier to the offshore industry - has seen its losses offset but not erased by revenues in its offshore drilling division and its floating production division.

Texan row

Harland and Wolff has been hit by a cashflow problem after Global Marine, a Texas contractor, won a court order to take delivery of a second drill ship without paying the money that Harland said it was owed.

It had said that the vessel was ready for delivery, but Global Marine refused to accept the ship and said it was not completed to their satisfaction.

The yard had primarily been concentrating on building these two drill ships.

While Harland and Wolff is firming up fresh orders, the wage bill is being met by its Norwegian parent.

Offshore employer

Altogether Fred Olsen Energy employs about 2,500 people onshore and offshore.

Most of its present operations are in the North Sea and West Africa.

Its annual turnover is $700m a year.

Its offshore drilling division consists of Dolphin and Dolphin Drilling, the latter is based in Aberdeen. Between them, they operate a fleet of six semi-submersible rigs.

Harland and Wolff falls within its engineering and fabrication division.

Harland and Wolff had operated as a shipyard since it was set up in 1852. Through Harland and Wolff, its Norwegian parent designs, makes and upgrades floating production systems, drilling rigs and specialised vessels.

Its third business is Floating Production, which it set up in 1994. The company owns and manages one vessels, which operate offshore West and South Africa.

One hint of what the future may hold for the company is its purchase of a stake in Navis, which has a deepwater drill ship.

The group has long stated its ambition to be an active player in the deepwater market.