Contract with TengizChevroil secures Topaz Energy H1 revenue of $149.5m

Topaz Energy reports H1 revenue of $149.5m

Contract  with TengizChevroil secures Topaz Energy H1 revenue of $149.5mTopaz Energy and Marine, a leading offshore support vessel company, has reported a consolidated revenue of $149.5 million for the six months ended June 30 this year, compared to $175.4 million during the same period last year.

The company reported an EBITDA of $76.6 million for H1 2016, compared to $80.8 million in H1 2015.

The company’s net profit margin during the first half of this year was 0.5 per cent, in comparison to 1.8 per cent during H1 2015, said a statement from the company.

René Kofod-Olsen, chief executive officer, Topaz Energy and Marine, said: “We have delivered a solid performance for the six months to 30 June 2016.”

“Although our revenue has softened against the six months of 2015, our EBITDA has remained robust and we have improved our EBITDA margin to just over 51 per cent,” he said.

“Our Caspian and Azerbaijan fleets continued to deliver, with an utilisation rate of 94 per cent in Azerbaijan. Our Middle East and North Africa (Mena) and Africa regions have had a challenging six months as the Mena market moves increasingly to spot rate contracts and our clients reduce or delay investment in the West Africa offshore market,” he added.

Kofod-Olsen said that the company expects the Caspian and Azerbaijan fleets to deliver a solid performance for the remainder of the year, where we generate the majority of our EBITDA.

He said: “One of our company’s most significant contracts was secured during the period: the $350 million contract with the Tengizchevroil (TCO) joint venture in Kazakhstan to construct, supply and operate 15 vessels for a minimum period of three years.”

“The contract requires innovative vessels able to navigate shallow river systems and we have engaged Vard to construct these vessels on our behalf. We will deploy the vessels in Q2 2018. This landmark contract in addition to the 14 vessel BP contract award during Q1 bring our order backlog to $1.6 billion, an increase of approximately 23 per cent against the same period last year,” he added.

Kofod-Olsen revealed: “We have mobilised four of our vessels from Mena to Russia to pursue long-term work. Our strategic cost efficiency program has successfully contributed to the improvement in our EBITDA margin which is now at just over 51 per cent compared to our historic average of mid to high 40s. Direct costs are now 15 per cent lower than last year and we are closely managing our cash position.”

“We expect the trading conditions for the rest of the year to continue being highly challenging. However, our major contract wins during the period demonstrate our continued ability to secure long-term work with reputable clients, capturing increasing value from this soft OSV market,” he added.

TradeArabia News Service