Topaz Reports Revenue up 7%

By Michelle Howard
Wednesday, May 21, 2014
Photo courtesy of Topaz

Q1 2014 revenue up 7% over Q1 2013 to US$ 89.4 million as a result of the expansion of the core vessel fleet and high vessel utilization.


Topaz Energy and Marine has announced the results of its subsidiary Nico Middle East Ltd. (“NMEL”) for the three months ended 31 March 2014 (“the period”).


The period has seen continued strong and profitable growth across the Group’s activities with revenues up 7% and EBITDA up 22%. This growth is primarily attributable to new vessels that have been added to the fleet and the improved utilization we have achieved across our core fleet. We have won a number of new contracts during the period resulting in a total backlog of medium and long-term contracts amounting to US$ 1.20 billion.
    


 Business Highlights

  • Safety performance consistently strong – zero LTIs and fatalities
  • Robust performance for the entire business attributable to expansion of core fleet and focus on cost control
  • High and stable utilization of core vessel fleet at 92.4% for the quarter
  • Four vessels added in Q1 2014, the modern DP2 PSVs Topaz Seema, Topaz Xara, Topaz Faye and Caspian Voyager


Financial Review  
Revenue increased by $5.6 million, or 6.7%, to $89.4 million in the period compared to $83.8 million in the quarter ended March 2013. This increase is primarily due to: (i) the addition of four new vessels resulting in an increase of $8.2 million and, (ii) better utilization and increase in vessel day rates resulting in an increase of $4.9 million. The increase in revenue was partially offset by two vessels which were moved from time charter contracts to bareboat contracts $1.8 million; loss of revenue due to vessels under dry-docks / off-hire $5.1 million and loss of revenue due to vessels sold $0.6 million.
 


Geographical segments

Caspian:
In the period, revenue increased by $1.8 million, or 3.6%, to $51.7 million compared to $49.9 million in the quarter ended March 2013. This increase was primarily due to the addition of two new vessels contributing $5.5 million in the period and better utilization resulting in an increase of $1.4 million. The increase in revenue was partially offset by two vessels which were moved from time charter contracts to bareboat contracts $1.8 million; loss of revenue due to two vessels in dry-dock $1.2 million; loss of revenue due to three vessels off-hire during mobilization between contracts $1.5 million and loss of revenue due to two vessels sold $0.6 million.
 
Mena:
In the period, revenue decreased by $0.4 million, or 1.8%, to $22.1 million compared to $22.5 million in the quarter ended March 2013. This variance is mainly due to the increase in the day rate for one vessel, resulting in an increase of $1.1 million offset by lower utilization in eight vessels by $1.5 million.

Global:
In the period, revenue increased by $4.1 million to $16.2 million compared to $12.1 million in the quarter ended March 2013. This increase was primarily due to the addition of two new vessels contributing $2.8 million in the period, demobilization revenue of one vessel resulting in an increase of $1.1 million and better utilization resulting in an increase of $2.2 million. This increase in revenue was partially offset by loss of revenue due to three off hire vessels resulting in a decrease of $2.0 million. 
 


Direct Cost
Direct costs for the period decreased by $5.6 million, or 10.1%, to $49.9 million as compared to $55.5 million in the quarter ended March 2013.
The decrease in bareboat charges is mainly due to the acquisition of two large anchor-handling vessels that were previously on bareboat charters in the Caspian. As a result of the acquisitions, these vessels will not contribute to bareboat charges in 2014.
 


EBITDA
EBITDA increased by $7.7 million, or 21.9%, to $42.8 million in the period compared to $35.1 million in the quarter ended March 2013. This increase is primarily due to: (i) the addition of four new vessels resulting in an increase of $5.7 million (ii) better utilization and increase in vessel day rates resulting in an increase of $6.5 million and (iii) savings in bareboat cost relating to two vessels,as explained above under Direct costs, resulting in an increase in EBITDA of $2.7 million. The increase in EBITDA was partially offset by two vessels moving from time charter contracts to bareboat contracts $0.5 million; vessel off-hire $4.0 million and loss of revenue due to vessels sold $0.5 million. The increase in EBITDA was also partially offset by an increase in overhead costs of $2.2 million which mainly relates to bad debt provisions.

Caspian:
The increase in EBITDA by $5.1 million is mainly due to the addition of two new vessels contributing $3.7 million, savings in bareboat costs for two vessels contributing $2.7 million and better utilization on two vessels contributing $1.0 million which is offset by loss of EBITDA on vessels operating under winter lay-ups resulting in a decrease of $0.8 million; due to vessel off-hire $1.0 million and loss of revenue due to vessels sold $0.5 million.

Mena:
The increase in EBITDA by $0.4 million is mainly due to better rates on one vessel contributing $1.4 million which is offset by lower utilization on six vessels resulting loss of EBITDA by $1.0 million.

Global:
The increase in EBITDA by $2.7 million is due to the addition of two new vessels contributing $1.9 million; better rates on one vessel contributing $0.9 million and better utilization of four vessels contributing $3.2 million. This increase is offset by loss of EBITDA on three vessels of $1.1 million and a bad debt provision on a contract in Nigeria amounting to $2.2 million.



Administrative Expenses:

Administrative expenses of $8.9 million, excluding one-off provisions, are in line with the expenses in the same period last year. However we have made a one-off bad debt provision of $2.2 million in the Global region resulting in an increase in administrative expenses by $2.2 million or 24.7% as compared to the same period last year.
 


Finance costs:
Finance costs increased by $4.8 million, or 51.6%, to $14.1 million in the period compared to $9.3 million in the same period last year. The increase in interest expense was primarily due to the refinancing of certain existing debt in Q2 2013 and interest charges on senior notes raised in Q4 2013 in line with the strategic plan.



Income tax expense:
Income tax expense increased by $0.4 million, or 9.0%, to $4.8 million in the period compared to $4.4 million in the same period last year. This increase is in line with the increase in revenue.



Cash flow:
The cash generation as a percentage of EBITDA has been 99% (Q1 2013: 65%).




 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Chevron Suffers Loss, Plans Job Cuts

Chevron Corp. reported a first-quarter loss as slumping oil prices continued to drag down revenue. The company said that it is "on target" to lay off a total of 8000 workers by the end of 2016,

China COSCO to be First through the Expanded Panama Canal

China COSCO Shipping has won the draw for its container vessel Andronikos to make the ceremonial first transit through the Expanded Panama Canal during the waterway’s inauguration on Sunday, June 26.

Sellick Equipment to Open New Facility

On April, 20, 2016, at the young age of 97 years, Walter Sellick along with sons Howard Sellick - President, David Sellick - Vice President and grandson Colin Sellick - Systems Manager,

Finance

Oil Price Bottoming Depends on Global Growth - IEA chief

International Energy Agency (IEA) chief Fatih Birol said on Sunday that oil prices may have bottomed but that would depend on global economic growth. Asked if oil prices had reached a bottom,

ExxonMobil 1Q Profits Plunge 63%

Highlights   * Earnings of $1.8 billion decreased 63 percent from the first quarter of 2015.   * Earnings per share were $0.43 assuming dilution.   * Cash

Shipping, Key Ingredient of EU’s Africa Agenda

The African economy has become one of the most promising global growth markets. Shipping is taking care of the largest part of international trade and in Africa

Energy

Oil Price Bottoming Depends on Global Growth - IEA chief

International Energy Agency (IEA) chief Fatih Birol said on Sunday that oil prices may have bottomed but that would depend on global economic growth. Asked if oil prices had reached a bottom,

Blacklisted Tanker Returns to Libya's Zawiya Port

A tanker that Libya's rival eastern government had been using to try to export oil in defiance of the Western-backed administration in Tripoli returned to the country on Saturday,

Lerwick Harbor sees Seasonal Boost

The opening of the offshore season in northern waters has seen specialist oil industry vessels return to Lerwick Harbor during April to support subsea development projects.

News

Oil Price Bottoming Depends on Global Growth - IEA chief

International Energy Agency (IEA) chief Fatih Birol said on Sunday that oil prices may have bottomed but that would depend on global economic growth. Asked if oil prices had reached a bottom,

Blacklisted Tanker Returns to Libya's Zawiya Port

A tanker that Libya's rival eastern government had been using to try to export oil in defiance of the Western-backed administration in Tripoli returned to the country on Saturday,

Lerwick Harbor sees Seasonal Boost

The opening of the offshore season in northern waters has seen specialist oil industry vessels return to Lerwick Harbor during April to support subsea development projects.

Vessels

KICT Welcomes MSC MEL 1 Service First Call

MSC Lana Voy-JA618R made its inaugural call at Karachi International Container Terminal (KICT), marking the launch of a new Middle East Loop 1 (MEL 1) Service.

Symphony Sun’ Launched in Leer

On Friday the 29th of April, Nb. 420 was launched in Leer. She was christened ‘Symphony Sun’ and is the fourth vessel in a series of 6 that will be delivered to Symphony Shipping.

ACR to Debut Pathfinder PRO SART at OTC

An important addition to any commercial vessel’s survival gear kit, the Pathfinder PRO SART is introduced by ACR Electronics, Inc. at this year’s OTC. The new search

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1650 sec (6 req/sec)