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EMAS Offshore bags contracts worth $33m, reports full year profit

EMAS Offshore bags contracts worth $33m, reports full year profit
EMAS Offshore has bagged $33m worth of contracts including extension of options and new awards for vessel charters, and recorded a full year 2015 profit.

The offshore services provider said its PSV will be providing services to an oil major in West Africa. Over in Asia, its contract is with an independent oil firm to charter out one AHTS vessel.

The average duration for the contracts is approximately 2.4 years, including the extension on an existing contract, and work is expected to commence before end-November.

“Our strategy to focus our bidding activities in West Africa will allow us to increase penetration in this market whilst maintaining dominance in Asia amidst this muted oil and gas environment,” said Adarash Kumar, ceo of EMAS Offshore.

The Oslo and Singapore-listed company also announced a profit of $199.54m in the 2015 financial year ended 31 August, a surge from the gain of $27.49m in the previous financial year. The profit was boosted by a $154.7m negative goodwill arising from the completion of the business combination of EOC Limited and EMAS Marine on 3 October 2014.

EMAS Offshore, formerly known as EOC Limited, was formed after consolidating with EMAS Marine, the offshore support services division of Singapore’s subsea services firm Ezra.

Revenue for financial year 2015 dipped by 13% year-on-year to $247.17m due mainly to the weak OSV market.

“As global concerns continue to affect the oil and gas services providers, we expect the near term pressure to continue,” said Kumar.

“The group is likely to experience an intense price competition on its charter rates and a tapered rate for its vessel utilisation. This will inevitably have an impact on the group’s operating and financial performance.”

The company said it has taken steps to mitigate the slow business prospects by reducing costs, implementing initiatives to improve operational efficiency and increasing focus on vessel utilisation.

TAGS: Offshore