Norway-based offshore feet operator Havila Shipping has recorded a 92 percent drop in third-quarter net income, as a doubling of expenses year-on-year coincided with a halving of operating profit.

The company result for the quarter fell to 17.3 million kroner ($2.57 million), down from highs a year ago of over 200 million kroner.

However, the market responded positively to the result — Havila was up 2.6 percent early Wednesday — and appeared to see the company’s inflated expenses were largely leaseback expenses for the Havila Mars and Havila Mercury. The “operational leasing” (as opposed to commercial leasing) are accounting expenses good for 27 million kroner ($4 million) per quarter.

“This increases the operational expenses in comparison with former years,” a statement said.

Havila managers, meanwhile, said the market for offshore service vessels was “good” during the third quarter, including a vibrant spot market.

“The demand for North Sea tonnage in other markets remains high despite unexpected fall in oil price which most likely affected by the financial crisis,” a statement said, adding, “Increased subsea activity will in the long term result in an increased demand for vessels specially designed for such operations.”

To meet the demand for vessels around the world, and to give exports a hand, Norway’s arm’s length financier of foreign banks capital project lending, Eksportfinans, is financing “up to 80 percent” of the building price for six ships under construction in Norway but headed for foreign service.

Havila is understood to have 13 suppy, anchor handling and offshore construction ships in its fleet, with another 11 being built.

Tags: Havila Shipping