AALESUND, Norway – Farstad Shipping ASA said it has initiated a process to reduce administrative expenses at its home office in Aalesund.
Karl-Johan Bakken, CEO of Farstad Shipping, said: “The current market situation is challenging. In order to strengthen the company’s competitiveness, we are working continuously to keep costs at the right level.”
The shipowner said it informed its employees about the process, which it expects to conclude by the end of February. The company did not specify in its statement what cuts it planned to make or the number of employees that could be affected.
Farstad said that, since 2014, it has implemented a number of cost-saving measures as part of a larger process. However, it expects more measures to come. The company has closed its Aberdeen branch and carried out redundancies and lay-offs among seafarers. It has also completed the sale of some of its older vessels, and laid up seven in the North Sea region.
“By initiating these measures, we are preparing for the future,” Bakken says.
Established in 1956, Farstad says that it is among the six largest companies in the market for large- and medium-size supply vessels. It currently has 59 in its fleet of anchor handling tug supply, platform supply vessels, and subsea construction and maintenance vessels, one of which is a VARD 3 17 subsea/IMR vessel due to be delivered in 4Q 2016.