In its third quarter ended 31 March 2016 for financial year 2015/16, Singapore-listed CH Offshore recorded a profit of $1.78m, a drop of 53.8% from $3.85m in the same period of last year.
The quarterly revenue fell by 11.5% year-on-year to $6.9m due primarily to lower vessel utilisation and significant decline in charter rates.
“The offshore support industry remains challenging. The continued low oil price has caused exploration and production companies to reduce their capital spending for offshore projects, which has resulted in a decrease in activity for offshore support vessels,” CH Offshore commented.
“Overall fleet utilisation for the offshore support industry has fallen significantly over the last 21 months, increasing the number of available vessels that are pursuing the fewer opportunities,” the company observed.
As a result, there is stiff competition for offshore projects leading to the decrease in day rates of OSVs, CH Offshore explained.
“The low oil price environment is expected to extend through 2016. The group will continue to trim operating and overhead costs and focus on maintaining and gaining fleet utilisation,” it stated.
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