EMAS Offshore reports loss for FY2016Company News // October 31, 2016
EMAS Offshore Limited has announced a net loss of US$265.3 million for the full year ended 31 August 2016 (FY2016). The net loss for the three months ended 31 August 2016 stood at US$98.5 million.
For the full year, the group recorded revenue of US$167.6 million, as compared to revenue of US$247.2 million in the same period a year ago.
The company said this decline in revenue was the result of "continual weakness" in the offshore industry leading to markedly lower demand as well as general over-supply in the offshore support vessels (OSV) segment.
The gross loss for the year stood at US$49.8 million as compared to gross profit of US$29.4 million in the previous corresponding period.
Captain Adarash Kumar, EMAS Offshore’s Chief Executive Officer, said: “The market continues to be extremely challenging. One bright spot for the group is that we are starting to see signs of stabilisation in utilisation rates though daily charter rates are expected to remain depressed for a considerable period of time.”
In the offshore support and accommodation services division, offshore support vessel achieved an utilisation rate of 55 per cent for FY2016. In the offshore production services division, the single FPSO vessel continues to perform well, with an operational uptime of close to 100 per cent for FY2016.
“Looking ahead, we believe that FY2017 will continue to be an extremely challenging period for the group. However we remain on track on the initiatives we have implemented to strengthen our financial position and conserve cash. The divestment of our FPSO1 has allowed us the flexibility to rework our costs and capital allocation, and streamlined our operational focus," he said.
“In terms of geographical expansion, West Africa continues to be a strategic market for the group. In anticipation of new business engagements, we intend to deploy more vessels in West Africa and also increase our presence in India,” Captain Kumar added.