EMAS Offshore announced net loss of US$265.3 million for the full year ended 31 August 2016 due to revenue decline in its offshore support vessel (OSV) unit.
Net loss for the three months ended 31 August 2016 stood at $98.5 million.The group recorded revenue of $167.6 million, as compared to revenue of $247.2 million a year ago.
This decline in revenue was the result of continual weakness in the offshore industry leading to markedly lower demand as well as general over-supply OSV segment, the firm said.
Gross loss for the year stood at $49.8 million as compared to gross profit of $29.4 million in the previous corresponding period.
Captain Adarash Kumar, EMAS Offshore CEO said, “The market continues to paint an extremely challenging landscape for the Group. Amidst this, one bright spot for the group is that we are starting to see signs of stabilization in utilization rates though daily charter rates are expected to remain depressed for a considerable period of time.”
In the offshore support and accommodation services division, offshore support vessel achieved an utilization rate of 55% for FY2016. In the offshore production services division, the single FPSO vessel continues to perform well, with an operational uptime of close to 100% for FY2016.
“Looking ahead, we believe that FY2017 will continue to be an extremely challenging period for the group. The divestment of our FPSO1 has allowed us the flexibility to rework our costs and capital allocation, and streamlined our operational focus,” Kumar said.
“In terms of geographical expansion, West Africa continues to be a strategic market for the group. In anticipation of new business engagements, we intend to deploy more vessels in West Africa and also increase our presence in India.”
Image of the Lewek Constellation, from EMAS.
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