MENA, Africa struggles impact Topaz’s support vessel revenue
Topaz Energy & Marine has issued an update on its activities in the offshore support vessel market.
Use of the company’s vessels stationed in theCaspian Sea region fell to 79% last year, due to the completion of some projects by clients.
However, in the Azeri sector fleet utilization remains strong at 94% reflecting the long-term contract cover for the vessels.
In theMiddle East North Africa (MENA) and Africa regions, pressure on rates was severe, with core fleet utilization down to respectively 60% and 47%, and the outlook in both regions remains difficult.
With the oil majors continuing to put the brakes on capex spending, and with subdued demand for offshore support vessels, Topaz laid up 12 vessels from the MENA and Africa core fleet last year, but the company adds that there are contracts worth pursuing on safe and profitable terms.
Both regions remain long-term strategic markets, it adds.
Last year the company cut its direct costs by 18.4% to $178.3 million, via measures that included optimizing crew costs, vessel lay-ups, and by negotiating savings on maintenance with core suppliers.