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Topaz Energy and Marine achieves revenue of $77m in Q1

Topaz Energy and Marine, an offshore support vessel company, has announced revenue of $77.7 million for the quarter ended March 31, 2016, a decrease of 8.8 per cent against revenue of $85.2 million in the same period last year.

EBITDA increased by $0.3 million to $39.7 million during the period compared to $39.4 million in the same period last year.

Rene Kofod-Olsen, CEO of Topaz Energy and Marine said: "We delivered a strong performance to start the year, achieving a robust EBITDA in a competitive market. However lower demand in our African and Mena businesses due to the protracted low oil price environment put pressure on our rates and our financial results this quarter.

"Our revenue is down about nine per cent compared with the same period last year, mainly due to increasing competition which is putting downward pressure on rates and affecting utilisation in our Mena and our nascent business in Africa. However, in Azerbaijan, only one of our 23 vessels is currently not contracted, with utilisation at 95 per cent. We expect to deliver a robust performance in the Caspian throughout 2016, supported by our strong relationships with oil majors and our ability to remain competitive in a lower oil price environment."

The firm secured two landmark contracts in 2016, bringing its backlog to $1.6 billion. It signed long-term contracts with BP for 14 vessels in Azerbaijan, and a $350 million contract with TCO in Kazakhstan to construct, supply and operate 15 vessels for a minimum period of three years.

Topaz Energy and Marine expanded its fleet further in the first quarter of the year with two additional vessels, bringing the total fleet to 100, including three newbuilds currently under construction. It acquired the AHTSV Topaz Mamlaka, deployed to Saudi Aramco in February on a long-term contract of three years plus options, and took delivery of the Topaz Resolve, a multi-purpose support vessel. Four of its vessels are under mobilisation to Russia from Mena to pursue better long-term opportunities.

"As expected, the first quarter of the year has proved challenging. While the oil price has stabilised over the last few months, the market remains very competitive. Our ability to secure long-term contracts with reputable clients and build our significant backlog demonstrates our commitment and belief in the long-term fundamentals of our industry," said Kofod-Olsen.

- business@khaleejtimes.com

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