Offshore installation services provider Swiber reported a rise in its first quarter revenue, however, it also posted a net loss.
Revenue was $191 million, up 16 percent from $165 million reported in the first quarter of 2015. In particular, Swiber said, revenue from ongoing projects in South Asia contributed 92.2% or US$176.4 million, with the balance coming from Latin America.
Profit however plunged to a net loss of $0.2 million, down from a profit of $70 thousand a year ago.
The Singapore-based company acknowledged the impact of cuts in investment made by oil companies due to low oil prices, however it expressed belief that that the impact on shallow water field development and production activities would be lower.
Deputy Group Chief Executive Officer Darren Yeo said that Swiber’s focus on field development rather than exploration stage of the production cycle in the oil and gas industry makes it less vulnerable to changes in oil prices and the industry’s expenditure cuts. He also said that the company has also instituted a more stringent cost control program.
“We continue to make headway in our turnaround effort by improving our operational performance while maximising cost efficiencies. This puts us in a better position to capitalise on future bidding opportunities,” Yeo said.
The group order book was $1.2 billion as at May 13, 2016. The company said it continues to see opportunities in its field of expertise and “is working actively on new project tenders in its target markets in South Asia, Southeast Asia, West Africa and Latin America.”