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Topaz Energy and Marine, the leading offshore support vessel company, which has its headquarters in Dubai, has announced a very positive set of results for the first quarter of the year, especially given the difficulties of trading in this particular market segment. Profitability on an EBITDA basis was up by 0.8%, to US$ 39.7 million, while net profits of US$ 2 million in this quarter were almost 82% above that achieved in the same period of 2015.
Revenue for the group was down about 9% compared with the same period of last year, mainly due to increasing competition which is putting downward pressure on rates and affecting utilisation in its Middle East and Africa businesses. However, the company’s operations in Azerbaijan remained strong, with only one of its 23 vessels currently not contracted and utilisation at 95%, demonstrating its strength in this region. The company also expects to deliver a robust performance in the Caspian throughout 2016, supported by strong relationships with oil majors and an ability to remain competitive in a lower oil price environment. However the company says it expects a challenging year in the Middle East as competition intensifies and the market shifts to spot contracts.
Topaz expanded its fleet further in the first quarter of the year with two additional vessels, taking the total fleet to 100, including three newbuildings currently under construction.
