Nautilus Marine narrows losses despite 'increasingly difficult' conditions

6th Mar 2019 08:31

(Sharecast News) - Offshore service industry investor Nautilus Marine Services saw losses from continuing narrow in its last trading year, as admin and operating costs decreased amidst a shift in focus.Losses from continuing operations narrowed 17.8% to $9.2m in 2018, partly driven by a 64% decrease to $1.8m for the group's operating expenses for offshore vessels and equipment at and a 20% drop to $1.1m for its administrative expenses for continuing operations.Nautilus also recorded a $6430,000 gain on disposals, primarily due to sales of non-strategic offshore vessels and equipment during the year.The AIM-listed group warned that offshore industry conditions had made it "increasingly difficult" to locate investment opportunities at attractive pricing, leading it to investigate expanded energy investment strategies during the second half of the year.As a result, Nautilus said it had taken appropriate steps during 2018 to identify opportunities to sell non-strategic vessels and equipment at premiums over acquisition costs.Looking forward, Nautilus believes its reduced cost structure and improved financial position, combined with opportunistic divestitures, will allow it to not only survive, but to also maintain a level of liquidity allowing to take advantage of opportunities created.Elsewhere, Nautilus revealed that long-time chairman Mikel Faulkner would be stepping down from the group, with immediate effect.Faulkner, one of Nautilus' founders, chose to retire in order to spend more time with his family but he will continue to offer his expertise to the company in an advisory capacity.Non-executive director Zac Phillips will take over as chairman on an interim basis until such time as Nautilus appoints a permanent replacement.As of 0830 GMT, Nautilus shares had sunk 9.72% to 6.41p.