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Offshore sector remains weak albeit growing West African market: EMAS

Offshore sector remains weak albeit growing West African market: EMAS
The business climate for the global offshore marine market continues to remain challenging despite the recent moderate rise in oil prices, though activities are seen increasing in the West African market, according to EMAS Offshore.

Adarash Kumar, ceo of EMAS Offshore, said: “The recent general increase in oil price has calmed sentiments somewhat and we have started to observe a marginal uptick in enquiries for our vessels. That said, as recovery is not expected to be imminent, we remain keenly aware of the softness in this market and will continue to stay vigilant on costs while working to improve effciency and utilisation.”

EMAS Offshore, the offshore support and production services division of Singapore’s Ezra Holdings, noted that the West African market continues to be promising with increased bidding activities.

EMAS Offshore is looking to further develop its business in the West Africa region as well as other regions so as to diversify revenue sources from its established base of Southeast Asia.

The sluggish state of the industry has resulted in EMAS Offshore slipping into the red in its third quarter financial period ended 31 May 2016. The company took a loss of $23.15m as against the profit of $5.18m in the same period of 2015.

Revenue fell by 41% year-on-year to $35.08m due mainly to markedly lower demand as well as general oversupply in the OSV segment.

The parent firm Ezra also sank deeper into the red with a third quarter deficit of $242.87m compared to the loss of $3.01m in the previous corresponding period.

Singapore-listed Ezra said its financial performance over the next 12 months is expected to remain challenging as pressure on charter rates and decreased utilisation continue to weigh on operations for the offshore support and production services division.