Topaz Energy and Marine, the Dubai-based oil services company, reported on Thursday deeper losses, rattled by the Middle East and Africa’s spot rates.
The company reported losses of US$10 million in the second quarter, compared to $700,000 in losses a year earlier.
______________
Read more:
[ Rebound foreseen for oilfield services companies ]
______________
René Kofod-Olsen, Topaz chief executive, said that the company continued to face difficulties in both the Mena and African markets, which are mainly controlled by the spot market with the Mena region holding a lower overall core fleet utilisation rate of 51 per cent, followed by Africa at 26 per cent.
______________
Read more:
[ Topaz Marine launches buyback for $350 million in senior notes due in 2018 ]
______________
“The outlook in both regions remains very challenging; however, we’ve witnessed a slight uptick in Mena tendering activities and as a result, reactivated three vessels from the Mena fleet and redeployed one vessel from Africa to Mena,” he said.
Revenues fell by a fifth to $57.4m in the three months ending in June, down from $71.8 a year earlier.
Topaz has six inactive vessels from the Mena fleet and one from Africa, which it plans to leverage to pursue other contracts in the region. “Mena and Africa remain long-term strategic markets for Topaz,” Mr Kofod-Olsen said.
______________
Read more:
[ Topaz to help Dragon Oil develop Turkmenistan’s offshore oil and gas ]
______________
He added that there were some signs of recovery with next year expected to offer better opportunities for growth.
One positive is that Topaz completed its issuance of $375m in senior notes, which were due next year. The company’s debt buyback will help the next phase of growth, Mr Kofod-Olsen said.