Offshore support vessel company Topaz Energy and Marine saw a boost in its first quarter 2016 profit, but a decrease in revenues due to low vessel utilization and pressure on rates.
The company on Monday posted a first quarter 2016 net profit of $2 million, an 81.8% increase compared to $1.1 million in the year-ago quarter.
Topaz’s revenue for the period was $77.7 million, a 8.8% decrease against revenue of $85.2 million in the same period last year.
Topaz explained that this negative variance mainly relates to off-hire of five barges in Kazakhstan in return for the removal of the purchase option clause in the contracts resulting in the loss of $2.1 million; lower utilization of one subsea vessel due to engine breakdown resulting in the loss of $2.5 million in revenue; loss of $1.7 million of revenue relating to two vessels in Africa being laid up in Turkey due to current market conditions; one-off mobilization revenue of $1 million on two vessels in Caspian considered in the same period last year; loss of revenue of $5.3 million due to increasing market pressure on rates and utilization in Mena region.
However, the company added, the decrease was partly offset by better utilization of one subsea vessel which was without work in the same period last year resulting in an increase of $2.1 million, and better utilization of three vessels working in Africa resulting in an increase of $3 million.
René Kofod-Olsen, Chief Executive Officer, Topaz Energy and Marine said: “Our revenue is down about 9% compared with the same period last year, mainly due to increasing competition which is putting downward pressure on rates and affecting utilization in our Mena and our nascent business in Africa.”
Topaz Energy and Marine recently brought its total fleet to 100, including three newbuilds currently under construction, with the acquisition of a 5220 BHP, 1300 DWT and 60 tonnes bollard pull anchor handling tug supply vessel (AHTS) Mamlaka.
Offshore Energy Today Staff