The Dubai-based Topaz Energy and Marine suffered a decline in revenue at its Mena operations in the third quarter as its struggled to deploy some of its vessels in the region.
A drop of almost 20 per cent in its Mena revenue to US$20.2 million from $25.1m a year earlier was the result of three factors, it said yesterday. One was the sale of a vessel at a $2.1m loss. Secondly was the difficulty in securing work orders for three of its vessels, leaving the rigs on standby at a cost of $2.1m over the first nine months of the year. The third factor was the loss of $5.2m as a result of five other vessels that remain in dry dock.
As oil prices continue to hover at about $80 a barrel, companies in the energy services sector are expected to suffer.
On Monday, Petrofac issued a profit warning, saying that its earnings for next year would be lower than previously forecast after the price of oil fell almost 30 per cent since midsummer.
Rodger Dickson, marine director for Aqualis Offshore, believes that the drop in the oil price was not the main culprit behind a softening in demand for offshore services at this time, but it could have played a role.
“It’s probably too early to determine the [financial earnings of companies such as Topaz] as being a result of the oil prices, but eventually it will filter into the sector,” he said.
Mr Dickdson said that the main area to watch for any impact from the decline in oil prices would be to look at vessel charters.
Abu Dhabi-based vessel provider Gulf Marine Services said this month that it was on track to deliver full year results in line with expectations.
Topaz, a unit of Oman’s Renaissance Services, operates about 25 vessels throughout the Mena region including in the UAE, Qatar, Saudi Arabia and North Africa.
The group’s gross earnings increased 28 per cent in the three months to September to $53m from $41.4m a year earlier as its West Africa operations boosted overall revenues.
Renaissance shares closed 0.6 per cent lower at 0.59 Omani riyals in Muscat yesterday.
lgraves@thenational.ae
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