EMAS Offshore Reports Upbeat Second Quarter

EMAS Offshore reported Tuesday that it improved its second quarter profit in spite of a difficult market brought about by the low oil price thanks to a continuing focus on operational efficiencies and costs.

The Singapore-based offshore oilfield services group said its 2Q 2015 net profit improved by 143 percent over 2Q 2014 to reach $9.7 million. However, revenue for the quarter came in lower at $60.9 million (2Q 2014: $67.6 million).

EMAS CEO Jon Dunstan commented in a company statement:

"The enlarged entity of EMAS Offshore has definitely positioned us to better ride out oil price volatility. While revenues and utilization rates have declined due to market conditions, we have realized cost benefits and operational efficiencies from the business combination. We are also pleased that the FPSOs, which are largely insulated from the current depressed oil prices, continue to contribute positively."

In the EMAS's Offshore Support and Accommodation Services division, the offshore support vessel overall utilization rate was 79% for the first half of the fiscal year, largely due to the weakness in the shallow water anchor handling, towing and supply vessels (AHTS) and shallow water platform support vessels (PSV) segments. However, the company said it sees ongoing demand for deep water capable AHTS, where utilization rate remains above 90 percent.

In the Offshore Production Services division, EMAS said the two floating production, storage and offloading (FPSO) vessels, Perisai Kamelia and Lewek EMAS, continue to perform well, maintaining high operational uptime of almost 100 percent.

Dunstan added:

"Under the current circumstance we are taking a more cautious view for the ensuing quarters. However, we have taken steps to maintain our operational performance, which include exercising and implementing ongoing cost-optimization initiatives, and focusing on operational excellence.

"These strategies will serve to protect our bottom line. Moving forward, we will ensure that we continue to improve operational efficiency with an added focus on sustaining vessel utilization."

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