Topaz Energy and Marine, a leading offshore support vessel and marine logistics company, reported consolidated revenue of $243 million for the nine months ended September 30, of 2018, a 39 per cent increase, from the $175 million recorded during the same period in 2017.

 The nine-month net profit after exceptions was $1 million, compared to a loss of $38 milllion in the same period in 2017.

The company also reported EBITDA of $128 million during the nine month period, an increase 45 per cent, compared to $88 million during the same period last year.

The company also revealed some of the highlights of its Q3 2018 results: Strong cash flow generation and increasing profitability.

 Q3 2018 revenue increased to $92 million, up 53 per cent compared to Q3 2017; EBITDA increased by 70 per cent to $51 million in Q3 2018 against Q3 2017; net proft (after exceptions) was $5 million, compared to a loss of $24 million during the same period last year; operational efficiencies ensured an increased EBITDA margin to 53 per cent in the period, despite ramp-up costs for Tengiz; the company significantly enhanced profitability.

Significantly increased contribution from the Tengiz project (part of Topaz Solutions): $65 million revenue and $44 million EBITDA contribution from Topaz Solutions during the nine months in 2018, generated by Topaz’s strategic marine logistics project Tengizchevroil (Tengiz). All twenty vessels for this project have been received from the shipyards of which fifteen vessels are earning full revenue as at 30th September 2018. Project ramp-up continues with full vessel deployment anticipated during Q4.

Market leading asset portfolio and fleet utilisation rates combined with improving market conditions: overall core fleet utilisation was at 86 per cent with significant improvements in Middle East and North Africa (Mena) regions; a modern, diesel electric anchor handling tug supply vessel (AHTSV) was added to the fleet and will be immediately deployed in Saudi Arabia; completed divestment of five laid up, aged vessels as planned (four in Q2 and one in Q3); solid contract backlog at US$1.4bn providing long-term earnings visibility and financial strength.

Strong financial performance supporting balance sheet deleveraging: continued to be fully compliant with all financial covenants with sufficient headroom; Moody’s upgraded the outlook on Topaz from negative to stable while reaffirming their B2 rating.

Health and safety record: Topaz’s strong commitment to safety illustrated by 33 consecutive months without Lost Time Injuries (LTIs).

René Kofod-Olsen, chief executive officer, Topaz Energy and Marine, said: “We have had a robust start to the second half of the year, with our market leading utilization rates remaining over 85 per cent driven by higher deployment in our Mena and Sub-Saharan Africa fleet as well as our newly added modern vessels.”

“This, along with the ramp-up of the Tengiz project, is clearly reflected in our financials with revenues and EBITDA up 39 per cent and 45 per cent respectively for the nine-month period compared to 2017 creating a strengthened balance sheet, while enhancing our profitability,” he said.

“With continued growth coming from our solid home market position in the Caspian Sea, our transformational Tengiz logistics project and the turnaround achieved in Sub-Saharan Africa, it’s clear our business fundamentals remain strong,” he added.

Kofod-Olsen said: “We remain agile in our management of our asset portfolio to ensure we are at forefront of industry innovation to drive growth in established and new markets. Following vessel divestments earlier in the quarter, we are delighted to have acquired an additional, modern, sophisticated, diesel electric AHTSV – the ‘Topaz Mariner’ - a sister vessel to the Topaz Master received in Q2.”

“These two vessels will be deployed into the growing market in the Kingdom of Saudi Arabia, servicing a major oil company,” he added.

“However, the robustness of the revenue contribution from Tengiz demonstrates a new market demand and a move away from a more traditional model. We continue to leverage the success of Tengiz to expand our services into offshore marine logistics across our existing and prospective blue-chip customer base to deliver further services and transformational growth. We expect all 20 Tengiz vessels to be deployed and earning full revenue by Q4 2018,” he concluded. – TradeArabia News Service