Topaz Energy earnings grow 12pc in H1
Dubai, August 26, 2014
Topaz Energy and Marine, a leading offshore support vessel company, has posted a 12 per cent increase in earnings before interest, tax, depreciation and amortisation (EBITDA) during the first half of the year and a 5.3 per cent growth in EBITDA margin.
The growth in EBITDA is attributable to new vessels being added to the fleet, said a statement.
However, the revenue for the period remained flat compared to the same period last year due to a temporary dip in project activity in its Caspian business and a number of vessels in dry-dock.
The revenue stood at $185.2 million, as compared to $185.4 million during the same period last year.
It included the revenue of $6.3 million for the sale of two vessels, due to which it increased $6.1 million or 3.4 per cent.
The increase is due to the addition of six new vessels resulting in an increase of $16.7 million, better utilisation and increase in vessel day rates resulting in an increase of $9.6 million, and an increase in mobilisation revenue of $2.9 million on new vessels deployed in the Caspian and global regions.
The revenue in the Middle East and North Africa (Mena) region, decreased $3.5 million, or 7.5 per cent, to $43.2 million compared to $46.7 million for the six months ended June last year.
The variance is attributable to a decrease in revenue due to the lower utilisation of three vessels of $1.3 million, five vessels in dry- dock of $2.9 million and the loss of revenue on a vessel sold of $0.7 million.
This decrease in revenue was partially offset by an increase in revenue due to the extension of charter party contracts of two vessels of $1.4 million.
Meanwhile, the Mena EBITDA also decreased $1.8 million, over lower utilisation of three vessels reducing EBITDA by $1.6 million and five vessels in dry-dock reducing it by $2.5 million.
The loss in EBITDA has been partially offset by the extension of the charter party contracts of two vessels contributing $1.1 million and better utilization on three vessels contributing $1.2 million.
Under the company’s operational review, the Mena business has delivered a solid performance both in Qatar and in Saudi Arabia. A number of the vessels are now contracted for most of the year.
The focus of the business is now on securing vessel commitments for Shah Deniz 2 and long-term contracts for our new PSV fleet in West Africa.
The vessel requirements for these regions continue to expand and the company is optimistic on securing several years’ worth of work for the vessels during the third quarter. - TradeArabia News Service