Topaz Energy and Marine, a leading offshore support vessel company, has reported a drop in the profits of its subsidiary Topaz Energy and Marine Limited, Bermuda for the quarter ended March 31, 2015.

The unit's net profit for Q1 of 2015 fell to $1.1 million compared to $9.2 million during the same period last year, said a company statement.

The consolidated revenue dropped from $89.4 million in Q1 of 2014 to $85.2 million in Q1 of 2015, the  report said.

René Kofod-Olsen, chief executive officer, Topaz Energy and Marine, said: “Our businesses in the Caspian and Mena regions, responsible for 85 per cent of total revenue, delivered robust performances for the quarter whilst our Africa operations reflected the investments Topaz is making in its fleet in the region and short-term pricing pressure.  

“Although the market was challenging during the quarter as our clients responded to a lower oil price, we are already beginning to see an increase in client activity across our regions.  As the market adjusts, we have been prudent, conserving cash, postponing non-essential fleet upgrades and re-financing a proportion of our debt on enhanced terms whilst controlling costs across the business,” he said.

“The favourable terms of our re-financing illustrate the strong growth opportunity of Topaz.  Our model of securing medium to long term contracts, our predominant presence in the sustainable  development and production phases of the oil extraction cycle and our young fleet of vessels position us very favourably in the market,” he added.

Olsen further added: “Our focus for the rest of the year will be on winning long-term contracts which will enable Topaz to continue delivering positive returns for our shareholders and investors as well as continued growth above our peer group benchmark.  

“Our expansion in Africa signals the opportunities open to Topaz to pursue growth in new markets.  We are now fully registered in our key African markets of Nigeria and Angola, which means we are able to pursue medium to long term contracts rather than the spot business to which we have been restricted to date.  We will experience some short-term pressure in Africa as we develop our fleet, but we remain convinced of the long term offshore opportunity the market represents,” he said.

“Our exposure to different markets means we are able to manage any short-term market pressure, underlining the strength of Topaz’s diversified portfolio.  We remain positive about the prospects for growth across our regions; business activity is picking up and we are confident that our strategy and operational excellence will help to deliver a robust performance for 2015,” he concluded. – TradeArabia News Service