EMAS Offshore Posts $3.2M Net Loss for 1Q FY2016, Revenue Dips to $49.8M
Singapore's oil and gas services provider EMAS Offshore Limited posted a net loss of $3.2 million for the three months ending Nov. 30, 2015 (1Q FY2016) on a revenue of $49.8 million, with its financial performance weighed down by challenging operating conditions arising from a volatile oil price environment, according to financial results released by the firm Monday.
EMAS Offshore's year-on-year revenue declined 32 percent from $72.7 million in 1Q FY2015 and the company indicated in a press release that "weaker top line and gross profitability in 1Q FY2016 were due mainly to softer demand for the group’s offshore support vessels, resulting from general weakness in the overall oil and gas industry."
The company added that the average utilization for its offshore support vessels stood at 67 percent.
“The global situation in the oil and gas industry continues to obscure certainty on where oil prices will land and, like all other offshore services players in the industry, we have been impacted in this current down-cycle. Notwithstanding strong industry headwinds, my team and I are working relentlessly to keep our vessels utilized in our existing as well as regions with resilient demand e.g. West Africa,” Captain Adarash Kumar, EMAS Offshore’s CEO said in his comments on the quarterly results.
Meantime, contributions from EMAS Offshore's associates and joint ventures increased 5 percent and 35 percent year-on-year, respectively, in 1Q FY2016 and the gains were largely driven by the stable performance of the Company’s two FPSOs (floating production, storage and offloading facilities) which achieved nearly 100 percent in
uptime for the quarter.
“In addition to increasing our focus on vessel utilization, our key priorities also include keeping our balance sheet on even keel. The steps we have taken to reduce costs and improve operational efficiency over the six to 12 months have started to bear fruit. However, we remain cognizant of the uncertainties in the oil price and industry and will persist in our efforts to streamline operations and expenses. We believe this will be key to helping us tide through the current down-cycle,” Captain Kumar added.
Parent firm Ezra Holdings Limited had issued Friday a profit guidance with respect to its unaudited consolidated financial results for 1Q FY2016, with the expected net loss attributed mainly to the continuing depressed state of the oil and gas industry which has impacted activities in the global offshore marine and subsea industry.
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