The shaky oil price scene made operating conditions tough.
EMAS Offshore (EMAS) took a nosedive into the red, recording a net loss of US$3.23m for the first quarter of FY16. In a release by the company, EMAS cited challenging operating conditions underpinned by a volatile oil price environment for the plunge from 1QFY15’s US$148.8m earnings.
“Weaker top line and gross profitability in 1QFY2016 were due mainly to softer demand for the group’s offshore support vessels, resulting from general weakness in the overall oil and gas industry. During the quarter, average utilisation for the offshore support vessels was at 67%,” the release stated.
Meanwhile, sales and administrative expenses respectively fell by 13% and and 59% YoY in line with cost rationalisation initiatives.
Contributions from EMAS’ associates and joint ventures grew 5% and 35% YoY respectively, driven by stable performance of its two floating production storage and offloading operations.
The company’s key priorities reportedly include boosting focus on vessel utilisation and keeping its balance sheet on keel, stated EMAS CEO Captain Adarash Kumar.
He further asserted that EMAS remains cognisant of the uncertainties the oil price and industry, and will persist in efforts to streamline expenses and operations to tide through the ongoing down-cycle.
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