Topaz Announces $65M Profit for 2009
Topaz Energy and Marine announced its audited financial results for 2009. Topaz posted revenue of $448 million, EBITDA of $ 127 million and Net Profit of $ 65 million demonstrating year on year growth of 7%, 14% and 38% respectively. The growth in these difficult times clearly demonstrates a resilience that sets Topaz apart from many of its peers.
Topaz Energy and Marine is an oil & gas focused marine services and engineering company with a regional footprint across the Middle East and the Caspian. In 2009, Topaz achieved record results for the ninth consecutive year and brought its total asset base on the balance sheet to $874 million while maintaining a comfortable gearing ratio of 0.89, confirming the company’s strong capital structure.
Fazel A. Fazelbhoy, CEO of Topaz Energy and Marine commented: “This is an outstanding achievement in a volatile economic climate and reflects the inherent strengths of our business. Facing great adversity, we have demonstrated our business to be one that grows shareholder value in a measured and responsible fashion in any economic cycle. Topaz’s recession resilience is a result of a considered blend of long and short-term contracts, exposure to geographies of strategic importance to global energy markets and our refusal to jump on the bandwagon of speculative vessel new-buildings at the peak of the market.”
Dubai-based Topaz Energy and Marine’s market outlook is cautiously optimistic for 2010 but clearly buoyant for the years to come. With global exploration and production (E&P) spend projected to rise by approximately 10% in 2010, the company expects this year to present a visibly firmer market but still with continued weakness in the first six months.
With oil prices having stabilized, Topaz sees very strong growth prospects for 2011 and beyond. This optimism arises from the company’s view that major investments will have to be made by international and national oil companies in offshore E&P and general hydrocarbon infrastructure, not only to replace the ageing infrastructure but also to keep pace with ever growing energy demand driven principally by China and India. Topaz is well placed to capitalize upon this development and its strategic plan includes significant investments in modern assets in the growing offshore support vessel sector. Topaz builds new offshore support vessels exclusively against medium to long-term contract awards and market-specific niches, which have significantly contributed to its strong 2009 results.
“Certain strategic acquisitions made in the Caspian and the Middle East in recent years, and subsequent additions to the offshore support vessel fleet are providing us consistent returns and cash flows. The strong balance sheet together with a splendid operating performance saw us navigate comfortably through the financial crisis” said Pramod Balakrishnan, CFO of Topaz.”We raised $ 150 million in debt financing in 2009 thanks to the support of our global and regional bankers. In 2010 we have already exceeded this figure in the first quarter,” he concluded.