Second quarter dip at Topaz

Revenue at the offshore support company dipped 5.6% to $95.9m from $101.6m in the second quarter 2013, although EBITDA rose 4.8% to $48.4m.

The results bring the company's first half profit to $21.9m, an 8.4% drop on H1 2013's $23.9m. Revenues for the first half were steady at $185.2m, while EBITDA rose 12% from $81.4m to $91.2m. Adjusting for a $6.3m gain on the sale of two vessels in 2013, revenues were up by $6.1m.

Increases in revenue from deployment of new vessels and improved utilisation in both the Caspian and West Africa were offset by the $17.9m impact of dry dockings and off-hire, and $2.7m revenue loss as two ships moved from time charter to bareboat contracts.

Topaz continues to work with its client in Azerbaijan with the aim of securing stable, long term employment for its vessels on the Shah Deniz 2 project, a second stage development of one of the largest natural gas fields in the world. Shah Deniz 2 has been marked as one of Topaz's focuses, along with its growing West African PSV fleet.

In West Africa, Topaz's Nigeria office is staffed and functional with 11 vessels operating in the West African region and high demand for the new PSVs added to the fleet.

"West Africa is a key growth market for Topaz and we expect to build on our rapid growth in the region to fully consolidate our position in several of the West African markets during the second half of the year," the company said in its earning release.

During the first half the Topaz fleet has grown by four vessels, all DP2 platform supply vessels. Three further vessels are expected to be delivered within the second half of the year, all DP2 3,300 dwt PSVs.

Outside of the reporting period, Standard Chartered Private Equity agreed to invest $75m in Topaz for a 9.8% stake in the company, with the funds to be used for Topaz's fleet expansion.

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