Topaz Energy and Marine, a leading offshore support vessel company, posted revenues of $216.1 million for the nine months ending September 30, marking a decline of 21 per cent over the corresponding period in 2015.

The company attributed the fall to increasing market pressure on rates and utilization in Africa and Mena.

The company maintained a robust EBITDA margin of 51.4 per cent, an increase of 4.2 percentage points as compared to the nine months ended September 2015, highlighting the progress of our programme of cost reduction.

Cost efficiencies continue while maintaining high standards of operational safety. The company has successfully generated savings of 18.8 per cent in total costs, or $31.3 million ,as compared to the same period last year.

René Kofod-Olsen, chief executive officer, Topaz Energy and Marine said, “Amidst extremely challenging market conditions, Topaz has delivered stable results for the nine month period ended September 30. Our cost efficiency programme and strategic position in the Caspian region have helped sustain a robust EBITDA delivery of $111 million at a stable margin.”

“Our revenues for the nine month period stand at $216.1 million, down 21.2 per cent compared to the same period last year. The decrease in revenues can be attributed to the OSV sector challenges, primarily driven by day rate reductions on long term contracts and direct loss of revenue due to increasing market pressures on utilization and rates. Our total utilization is however above regional benchmarks, which is a testament to our strong operating model.

“We are currently evaluating further optimization of our operating model and cost position, without jeopardizing our safety and operating standards. Direct costs are now 19 per cent lower than last year and we are closely managing our cash position.

“As the OSV sector challenges continues relentlessly, market recovery remains unpredictable. Charter rates have fallen sharply despite the oil price recently levelling off in the $45-50 per barrel range. Recent production cut initiatives between OPEC members is the only positive development.

“While we remain hopeful that the level of activity may gradually increase throughout 2017, we remain prudent and conservative in managing cash flows, operations and costs to ensure our sustainability and competitiveness in this difficult environment,” he added. – TradeArabia News Service