Mermaid Maritime, a provider of subsea and drilling services to the offshore oil and gas industry, has reported net loss of $2.1 million for the three-month period ended September 30, 2017.
This result compares with quarterly profit of some $7.5 million in the corresponding period in 2016.
The Singapore-listed company generated revenue of $30.6 million versus $52.1 million same time last year. According to Mermaid, a 41 percent year-over-year drop in revenues was mainly due to low utilization for its major vessels.
Subsea fleet utilisation for the quarter was down 22 percent from 55 percent same time last year, a result of four major vessels utilisation drop of almost 50 percent.
At the end of the first quarter 2017 Mermaid’s backlog stood at $174 million. The company’s cash & deposits balance stood at $95.9 million.
For the nine-months period, the company generated profit of $2.3 million on revenue of $111.2 million, compared to profit of $16.5 million on revenue of $141.1 million.
Mermaid said that offshore/subsea vessel companies are still expected to struggle financially in 2018 given the lack of construction and IRM work available, increased subsea tonnage entering the market and the consequential pressure on rates.
Subsea World News Staff