Prosafe, an operator of offshore accommodation vessels, has said that tendering activity continues to pick up in the North Sea market as well as internationally.
In its financial report for the third quarter 2018 Prosafe said on Tuesday that one main driver for the increase is maintenance and modification work being sanctioned as a result of higher oil prices. Brazil continues to be seen as an important market with tender activity expected in the period ahead.
In addition, Prosafe said it continues its efforts in Mexico to be well positioned when opportunities again arise.
Prosafe reported operating revenues of $73.6 million compared to $68.9 million in the corresponding period of 2017. The company said that the revenues went up on higher utilization at 48.1% (Q3 2017: 38.9%) but were partially offset by lower average dayrate.
Operating profit for the third quarter amounted to $3 million compared to operating loss of $616.2 million including an impairment charge of $609 million back in 3Q 2017.
The company recorded a net loss of $112 million in third quarter 2018 compared to net loss of $635 million in the same period last year.
At the end of the quarter, Prosafe’s firm backlog has increased to $232 million.
While the current pricing and backlog do not support earnings growth in 2019, the company expects utilization to continue improving in 2019 with an anticipated increase in rates from 2020.
Offshore Energy Today Staff