Topaz Energy and Marine, an offshore support vessel (OSV) company based in Dubai, UAE, has announced its results for the twelve months ended December 31.
Revenue for the period was $244mn, a slight decline of 13% compared to the $282mn revenue accrued in 2016. The firm said the decrease was partly due to the result of the off-hire of barges and tugs in Kazakhstan, loss of revenue due to layups and pressure on rates and utilisation in the MENA and Africa regions.
However, this decrease was partially offset by the commencement of revenue from the company’s contract at the giant Tengiz oilfield in Kazakhstan. In 2016, Topaz secured major contracts worth around $500mn for the delivery of 20 OSVs at the project.
Additionally, the company’s direct costs decreased by $9mn, a 5% improvement year-on-year, to reach $169mn in 2017, compared to $178mn incurred last year.
Topaz also revealed that its fleet experienced a utilisation rate of 65% during the past year while the company has reported no lost time injuries in two years.
René Kofod-Olsen, CEO, Topaz Energy and Marine said:
“2017 was a challenging year for the industry, but we believe the worst of the downturn is now behind us. 2018 will also be challenging but we are cautiously optimistic as market conditions improve. Oil markets are more positive with demand and supply close to equilibrium. The number of projects being commissioned is increasing, with the supermajors reporting improved results for Q4 2017.
“Despite the market conditions, Topaz made good progress during the year against our strategy. We secured a number of important contracts during the year including Dragon Oil in Turkmenistan and Total in Azerbaijan. We commenced operations of two vessels for our Tengiz contract in Q4 2017, six months ahead of schedule. This is a game-changing contract for our business.”