Prosafe has adopted different assumptions from that disclosed in its April 20 annual report for the financial year ended Dec 31, 2019. The assumptions were also significantly different from Floatel’s assumptions used in the calculation of the VIU of its vessels.
Floatel’s 4Q results ended Dec 31, 2019, stated that Floatel had performed an impairment assessment of its vessels and recognised an impairment of US$30.3 million to the book value of its vessels.
In making this impairment, Floatel had in the calculation of the VIU of Floatel’s vessels, made certain assumptions in respect of the charter rates, utilisation, operating expenses, capital expenditures and discount rate of its vessels.
On Feb 23, Keppel Corp determined that no further impairment was required on the carrying value of the its investments in Floatel of approximately $477 million as at Dec 31, 2019, which had already taken into account, among others, its $51 million loss in Floatel.
See also: Nam Cheong secures RM317.1 mil worth of multi-year OSV charter contracts
As at 9.55am, Keppel Corporation shares were changing hands 1.7% higher, at $6.01.
