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Swiber full year profit drops by 65%

Swiber full year profit drops by 65%
Offshore services provider Swiber recorded a dip in 2014 profit over the previous year as revenue was reduced by lower contributions from ongoing projects.

Profit for the year ended 31 December 2014 fell by 65.1% to $21.71m from $62.12m in 2013.

Revenue also decreased by 30.1% year-on-year to $726.51m as contributions from ongoing projects were substantially recognised during the 2013 financial year while new projects commenced only in the fourth quarter of 2014 and in 2015.

Swiber noted that market conditions in the offshore sector have been more challenging from the second half of 2014 as oil prices softened. The group, however, believes that the impact on shallow water oil and gas field development and production operations would be lower compared to deepwater activities and projects in the exploration stage.

“The group’s EPIC activities focus on the field development stage, that is, post-exploration and appraisal stages when customers have decided to commence development activities,” said Francis Wong, group ceo and president.

“In addition, our expertise is in providing EPIC services for shallow water oil and gas projects which have lower break-even costs as compared to deepwater projects,” Wong added.

As at 27 February 2015, the group had a record orderbook of $1.4bn.

Swiber said as the group continues to pursue new project tenders in its target markets, it will adopt a prudent and cautious approach in light of the oil price volatility and take the necessary steps to mitigate such risks.

Around 66% of the group’s revenue was derived from Southeast Asia, 27% from Latin America with the remaining 6% from South Asia and other markets.

TAGS: Asia Offshore