Floating production vessel operator BW Offshore has posted a 3% rise in operating revenues but says, which outsourced floating solutions remain an attractive option, the low oil price environment will see a reduction in orders that is expected to be prolonged.
The firm is still working on recovering its Cidade de São Mateus floating production storage and offloading (FPSO) vessel (pictured), which was damaged in a fire on 11 February this year, offshore Brazil. The incident saw nine of the 74 crew die and 26 require medical attention.
The firm says work is ongoing to empty the unit of cargo and disconnect the unit for transport to a yard for repairs.
BW Offshore has also suffered a delay on the hull build for the Catcher FPSO project. But, it says that a mitigation plan has been put in place to minimize the impact of the delay and that the project, for Premier Oil in the North Sea, remains on budget with expected first oil in 2017.
BW Offshore said: "The short- and medium term outlook for BW Offshore’s products and services has changed due to the drop in oil price. BW Offshore still expects outsourcing of production to be a cost effective solution for oil and gas companies, but believes it is prudent to expect a prolonged downturn in orders being awarded.
"The majority of BW Offshore’s fleet remain on long-term contracts with national and independent oil companies. The fleet will continue to generate a healthy cash flow in the time ahead. Redeployment of units coming off contracts will be affected by the reduced number of new developments. In the current market, BW Offshore believes it is important to preserve financial capacity for a more uncertain future."
BW Offshore posted US$ 243.7million operating revenues for 2Q 2015, up 3% on the same period last year. The firm operates 17 units, 14 of which are owned FPSOs and one FSO. Average uptime during 2Q was 99.8%, the firm says.
Read more
Subscribe
