Topaz posts nine months revenues of RO 175.4m

Business Reporter -

MUSCAT, NOV 21 -

Leading offshore support vessel company Topaz Energy and Marine (Topaz), a subsidiary of Renaissance Services — a publicly traded firm listed on the Muscat Securities Market (MSM), posted revenues of $175.4 million for the nine months ended September 30, 2017, which were lower by 18.8 per cent against the corresponding revenues of $216.1 million in the same period of last year.

Topaz attributed the decline to a number of developments: (i) loss of revenue of $14.4m due to lay-ups and pressure on rates and utilisation in the MENA and Africa regions, (ii) off-hire of barges and tugs in Kazakhstan of $13.5m, (iii) off-hire/standby rate on two subsea vessels of $6.2m, (iv) loss of revenue due to lower utilisation in Russia of $2.6m and (v) lower mobilisation revenue of $1.6m. However, this decrease is partly offset by a new vessel deployed on a long-term contract of $0.9m, it said.

René Kofod-Olsen, Chief Executive Officer, Topaz Energy and Marine, stated: “Despite exceedingly challenging market conditions, Topaz has delivered stable results for the nine month period ended September 30, 2017, with an upwards quarter-on-quarter trend compared to Q2 2017. With a robust cost-efficiency programme in place, we maintained a stable EBITDA margin of 50 per cent and reduced costs by $16m, 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.

“We will continue to adjust and enhance the business making it more efficient and effective. During the period, we signed a contract with Orange to digitise processes across the organisation; a solution which will allow us to connect with our fleet at sea in real-time, effectively transforming them into branch offices at sea,” Kofod-Olsen said.

Revenues for the nine month period stood at $175m, down 19 per cent compared with the same period last year, said the CEO. EBITDA is at $88m, 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,” he noted.

Topaz provides logistics support and marine solutions to the global energy industry with primary focus on the Caspian Sea, the Middle East, West Africa and Subsea operations in the North Sea and the Pacific. Headquartered in Dubai, Topaz Energy and Marine operates an existing fleet of around 100 offshore support vessels.