Swiber's 2Q 2015 Revenue Falls 8.7% to $200.2M on Fewer Contracts
Swiber Holdings Ltd., a Singapore-based provider of engineering, procurement, installation and construction (EPIC) services for the offshore industry, posted an 8.7 percent decline in revenue to $200.2 million for the second quarter of 2015 (2Q 2015) that ended June 30, compared to $219.3 million in the corresponding period last year, according to financial results released by the company Friday.
The lower revenue resulted from the execution of fewer contracts during the second quarter. Latin America accounted for 64.3 percent or $128.7 million of Swiber's revenue, with the balance coming from Southeast Asia, South Asia and other markets. Meanwhile, revenue in the first half of this year was down 12.8 percent to $365.1 million and the company posted a net loss of $3.1 million from a profit of $63.0 million in the same period last year.
Swiber's 2Q 2015 pre-tax profit fell 81.3 percent to $2.2 million compared to $11.8 million a year ago and the firm incurred a net attributable loss of $4.6 million in 2Q 2015 against a profit of $7.5 million last year.
“Our second quarter results reflected the cautious sentiment in the oil and gas industry as the price of crude oil remained volatile ... Our order book of nearly $2 billion is keeping us busy during this lull period although we continue to see opportunities in some of our target markets. We hope to keep the business momentum up and to sign more contracts to secure a robust pipeline for the medium term,” Deputy Group CEO Darren Yeo said in the press release.
An $80 million letter of intent Swiber signed in Latin America for the installation of monobuoys, pipeline-end manifolds, and a submarine pipeline as well as new contracts secured over the past few months boost its order book to a record $1.7 billion.
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