Topaz Energy and Marine Q1 2017 revenue drops by 25%

Jun 03, 2017: Dubai-based offshore support vessel company Topaz Energy and Marine announced a decline in revenues in the first quarter of this year.

Revenue for the period was $58.2mn, a decrease of 25.1 percent against corresponding revenue of $77.7mn in Q1 2016.

"When taking into consideration the unprecedented challenges facing our industry which have resulted in a collapse in demand that has impacted charter rates and ultimately affected the profitability of offshore vessel providers, our Q1 2017 results can be regarded as stable," said René Kofod-Olsen, chief executive officer, Topaz Energy and Marine.

Topaz said that the decrease in revenue was caused because of a number of factors including anticipated off-hire of barges and tugs in Kazakhstan of $4.2mn; off-hire of two subsea vessels of $2.2mn; lower mobilisation revenue of $0.9mn; loss of revenue of $4.6mn due to vessels laid up in the MENA region; loss of revenue of $6.6mn due to increasing market pressure on rates and utilisation in the MENA and Africa regions etc.

However, this decrease is partly offset by a new vessel deployed on a long-term contract of $0.9mn.

"Revenue for the quarter is at $58.2m which is down 25% compared with the same period last year. EBITDA is at $31.2mn, down 21% compared with the same period last year. Our EBITDA margin has improved to almost 54% on the back of our persistent efforts to optimise our cost base and reshape the organisation to better perform in a volatile and unpredictable market. Our operating costs reduced by $9mn and stand at $38.5mn for the quarter," Kofod-Olsen was quoted as saying.