Prosafe, an operator of offshore accommodating units known as flotels, returned to quarterly profit but sank to a loss on an annual basis.
Prosafe on Tuesday posted a profit of $4.9 million for the fourth quarter 2017 compared to a loss of $32.7 million in the same period of 2016.
EBITDA for the fourth quarter amounted to $40.1 million as opposed to $78 million in 4Q 2016. This decline is mainly due to lower utilization of the vessels.
Prosafe’s operating revenues for the fourth quarter 2017 dropped to $76.7 million from $125.8 million in the prior-year period.
Fleet utilization in the fourth quarter of 2017 was 36.1% compared to 43% in the same period of 2016.
On an annual basis, the company recorded a loss of $682.2 million for 2017 compared to a profit of $172.6 million in 2016.
Fleet utilization in 2017 was 38.4% compared to 43% in 2016.
Commenting on current market situation, the company said that macro indicators have continued to show positive development since the last quarter. However, this is yet to materialize in activity pick-up in the offshore accommodation market. Consequently, Prosafe continues to anticipate a volatile market for the foreseeable future.
Prosafe noted that the North Sea was one of the hardest hit regions during the downturn. The company continues to see low incremental activity in the North Sea in the short term although new opportunities are expected to arise.
The company added that international markets will be increasingly important, with Brazil and Mexico anticipated to become key long-term markets. Indications are that the demand for accommodation services will gradually pick up from 2019. Positioning for key upcoming tenders remains a near term priority.
Offshore Energy Today Staff