Swissco looks for growth amid tough offshore market

Tan Fuh Gih, senior executive director of Swissco, pointed out that the company’s drilling business remains stable with long term charter contracts, but charter day rates might come under pressure in 2015.

Tan said reduced upstream budgetary capital spending by oil companies and excess offshore rigs capacity have contributed to a challenging operating environment.

“The group will continue to explore opportunities to increase its fleet size and procure new charter contracts selectively and accretively,” Tan commented.

Meanwhile Singapore-listed Swissco achieved a net profit of $21.9m in the first quarter ended 31 March 2015, a considerable increase from the gain of $4.15m in the same period of last year.

Revenue during the quarter was recorded at $19.09m, with contributions coming mainly from the group’s two fully-owned drilling rigs after they commenced charter in September 2014.

Swissco entered into the drilling rig business after it acquired Scott and English Energy, a company that owns and leases mobile offshore drilling units and service rigs.