Cost reductions lift Prosafe 1Q numbers. Flotel demand to pick up from 2019

World’s largest offshore accommodation rig supplier Prosafe turned profitable in the first quarter of 2018, after posting a loss in the corresponding period of 2017.

First net quarter profit in 2017 was $16 million, compared to a loss of $19 million a year ago.

The company’s EBITDA in 1Q 2018 of $49.2 million was higher than last year’s $38.2 million, despite lower fleet utilization, Prosafe said. The fleet utilization was of 33.3 percent in the quarter, down from 40 percent a year ago.

However, Prosafe says it’s managed to increase EBITDA by lowering operating expenses through continuous cost reduction exercises and the revenue adjustment relating to the adaption of IFRS 15.

During the quarter, Prosafe won a five-month contract for the Safe Caledonia flotel, for work on the Clair Ridge project, scheduled to start later this month.

Despite this, Prosafe said it continues to see low incremental activity in the North Sea in the short-term. Nevertheless, the company has noted an increase in inquiries outside the North Sea, especially looking at Brazil and Mexico.

“It is anticipated that these two markets will be key in the longer term with opportunities expected to arise first in Brazil. While proactively evaluating different market requirements, Prosafe continues its efforts on cost efficiencies and business improvement so as to ensure the company is well placed before the market upturn. Indications remain that the general demand for accommodation services will gradually pick up from 2019,” the company said.

Share this article

Follow Offshore Energy Today

Events>

<< Apr 2019 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 1 2 3 4 5

GeoConvention 2019

GeoConvention offers some of the best local and international insights to efficient energy exploration…

read more >

16th MOSCOW INTERNATIONAL OIL AND GAS EXHIBITION

The Moscow International Oil & Gas Exhibition display products like oil and gas products, oil and gas services…

read more >

Erbil International Oil & Gas Exhibition 2019

The event will be held at the Erbil International Fair Ground which is one of the largest energy related events in Iraq…

read more >

THE 24 th IRAN INTERNATIONAL OIL , GAS , REFINING & PETROCHEMICAL EXHIBITION

The second largest OPEC producer, Iran sits atop 11 percent of oil and 18 percent of gas…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply