Offshore accommodation provider Prosafe has seen profits sink as the downturn continues a soft market environment.
The owner and operator of semi-submersible lodging vessels blamed the drop in year on year revenues and profits on there being more sellers than buyers for its products.
Revenues for the six months to the end of June were down to $137.4million, compared to $218.4million in the same period last year.
The bottomline was also affected, with a loss before tax of $49.4million made in the same period this year, compared to the profit of $7.7million made to the end of June in 2016.
The decline reflects lower fleet utilisation and reduced day rates, according to Prosafe.
The firm said continued low oil prices and “cautious” exploration and production spending indicated that activity levels “may stay lower for longer than previously expected”.
The firm added in a statement: “In the medium to longer term, it is anticipated that a combination of efficiency gains implemented and accumulating work related to producing and ageing infrastructure, will lead to activity growth.
“It is further anticipated that exploration activity, new field developments and tie backs will result in demand also for offshore accommodation services. From a longer term perspective, activity may also be supported by the decommissioning market.”
Four vessels lay idle in Q2 of 2017 and were laid up.
The Safe Regency was also sold for recycling for $1.25million.
Prosafe has now scrapped five vessels as part of a strategy to “high grade” the fleet and preserve cash flow.
Highlights for the quarter included a $53million 12 month contract for Statoil’s Johan Sverdrup project.
The Safe Scandinavia tender support vessel (TSV) was fully contracted with the Norwegian operator until the end of June 2018.
Safe Notos commenced a three-year and 222 day contract for Petrobras in December and was on contract throughout the second quarter.
From July Safe Notos was off-hire to allow preventive maintenance and repair of the gangway. It recommenced operations with Petrobras in early August.
Safe Concordia was fully contracted in the second quarter for Petrobras at a market adjusted dayrate.
The vessel completed contracted operations with Petrobras late July and will transit to Curacao for lay-up and is available for future work.
Safe Boreas continued the Repsol Sinopec contract in the UK at market adjusted rates until 24 April 2017.
Following preparation and mobilisation, the vessel commenced a 13 month period with Statoil at the Mariner installation in the UK in early August.
Safe Caledonia commenced a contract with Total for firm period of 134 days plus a 30 day option in the UK mid May.
Safe Eurus is in a preserved, strategic stacking mode with COSCO (Qidong) Offshore Co. Ltd. (COSCO) in China.
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