Monday 25 May 2020

Topaz Energy posts 73pc jump in Q1 revenue

DUBAI, May 7, 2019

Topaz Energy and Marine, a leading offshore marine logistics company, has posted a consolidated revenue of $114 million for the first quarter of the year, as against $66 million for Q1 2018, marking an increase of 73 per cent.

EBITDA increased by 100 per cent to $66 million in Q1 2019 against Q1 2018 ($33m), the company said in a statement.

The full deployment of the Tengiz fleet under Solutions, re-contracting of Azerbaijan project vessels and robust focus on efficiencies resulted in the strengthening of EBITDA margin to 58 per cent from 50 per cent in the same quarter of the previous year. Topaz Solutions contributed towards the Company’s growth with record revenue and EBITDA contributions of $50m and $44m respectively.
Average day rate increased 27 per cent from to $17,287(Q1 2018: $15,349).

The company continues to significantly enhance profitability, with four consecutive quarters of profits after tax (before exceptional items), Topaz said in a statement.

René Kofod-Olsen, chief executive officer, Topaz Energy and Marine said: “Topaz’s performance in the first quarter of the year demonstrates constructive resilience of our strategy. Throughout 2018, global market uncertainty and oil price volatility continued to challenge the offshore vessel industry. However, with analysts forecasting an average Brent price of close to $70/bbl over the year, the E&P sector is expecting an 8 per cent rise in spending in 2019, offering tremendous opportunities for us.”

“Testament to these growth opportunities, we have delivered a robust set of results in Q1 2019 with a 73 per cent increase in revenue to $114m and a 100 per cent increase in EBITDA to $66m compared to the same period last year, and I’m especially pleased to note a 27 per cent increase in the average day rates of our core fleet compared to the same period last year.

“Our market-leading utilisation rates continued at a leading86 per cent, driven by full deployment in our Solutions business through the Tengiz project, the predicted redeployment of our project vessels in Azerbaijan and the stability of our Mena & subsea fleet. With all 20 Tengiz vessels now earning their full operational day rate, we saw the full impact of the project during the quarter, and all vessels have been safely re-activated from their planned winter hibernation,” he added.

“As stated earlier, we added two, modern subsea MPSV’s to our fleet during the quarter which were deployed in the North Sea working with well reputed counter parties. These vessels are high-spec, high-quality newbuilds delivered from the renowned Norwegian shipbuilder, Vard. These two subsea vessels also attributed to the maintenance of our high utilisation during the quarter and assisted us in reaffirming our position as a reliable partner at the forefront of industry innovation,” Kofod-Olsen explained. – TradeArabia News Service


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