Topaz anticipating better 2018 but market remains very toughCompany News // November 23, 2017
Topaz Energy and Marine 's chief executive officer René Kofod-Olsen says that, despite what he called “exceedingly challenging conditions,” the company delivered stable results for the nine month period to 30 September 2017, with an upward quarter-on-quarter trend compared to the seocnd quarter of 2017.
“With a robust cost-efficiency programme in place, we maintained a stable EBITDA margin of 50 per cent and reduced costs by US$16 million, a decrease of 12 per cent on the same period last year, thereby enabling the organisation to better perform in a volatile and unpredictable market,” Mr Kofod-Olsen said.
“We will continue to adjust and enhance the business making it more efficient and effective. Revenues for the nine month period stand at US$175 million, down 19 per cent compared with the same period last year. EBITDA is at US$88 million, down 21 per cent compared with the same period last year.
"Our financial results continue to be impacted by the OSV sector challenges, driven primarily by depressed investments from the energy sector, adding pressure on rates and utilisation.”
Mr Kofod-Olsen said rising demand and flattening global supplies, coupled with OPEC’s cuts since January, seem to indicate an upward trend for prices after three years in the doldrums. “We foresee OSV markets responding positively to this with an expected increase in tender activity that will help absorb the excess tonnage over time,” Mr Kofod-Olsen said.
“We are beginning to see some signs of recovery in the market, and while we expect 2018 to offer better opportunities for growth, challenging market conditions will prevail in most markets.”