EMAS Offshore says market is challenging but bidding activity at a good levelCompany News // July 7, 2015
EMAS Offshore Limited reported net profit of US$5.2 million in the three months ended 31 May 2015, an increase from the US$0.2 million in the corresponding period. Revenue was US$59.2 million, a decrease of 15 per cent from the same period last year.
The higher net profit was supported by robust contributions from the offshore production services division, which comprised two FPSOs.
This was offset by weakness in the PSV and anchor handler business segments.
Jon Dunstan, EMAS Offshore’s Chief Executive Officer, said: “Amidst the challenging market environment and oil price volatility, we continue to take steps to reduce costs, implement initiatives to improve operational efficiency and increase focus on vessel utilisation.”
In the offshore support and accommodation services division, utilisation rate was down to approximately 70 per cent for the quarter, largely due to relatively weak demand for small AHTS and shallow water PSV, which resulted in a utilisation rate of 74 per cent for the nine months ended 31 May 2015.
However, the company continues to see sustained demand in the larger AHTS segment, where utilisation rate remains high at above 90 per cent, as vessels of this category are required in the Asia-Pacific and West Africa regions to support various offshore activities.
In the offshore production services division, the two FPSOs continue to perform well, with high operational uptime of more than 98 per cent. The FPSOs are both on multi-year contracts and operating in production fields with good long-term production rates and profiles. This has added resilience to the company’s financial performance despite volatility in the oil price and operating environment.
The company recently announced contracts wins valued at approximately US$30 million across West Africa and Asia Pacific, and separately announced an additional US$24 million worth of contract awards in the same regions.
“Looking ahead, the short-term outlook for the industry still remains challenging, but we believe that our strategy of focusing our capabilities and maintaining operational excellence in key geographical areas will hold us steady,” said Mr Dunstan.
“We will continue to leverage synergies within the EMAS brand to create comprehensive and integrated solutions for our clients.”