Mermaid Maritime, a provider of subsea and drilling services to the offshore oil and gas industry, has reported profit of $4.2 million for the year 2017.
This result is 75 percent lower compared with profit of some $17.2 million in 2016.
The Singapore-listed company generated revenue of $148 million versus $187 million reported for the full year 2016. According to Mermaid, a 21 percent year-over-year drop in revenues was mainly due to low utilization and day rates.
Subsea group reported service income of $144.7 million, a decrease of $40.5 million compared to 2016.
At the end of the fourth quarter 2017 Mermaid’s order book stood at $148 million.
For the three-months period ended December 31, 2017, the company generated profit of $1.9 million on 11 percent higher revenues, recovering from net loss of $2.1 million in the previous quarter.
“There are signs that the subsea vessel market is recovering more quickly than others, but evidence to date suggests that while Tier 1 contractors are slowly coming out of the downturn in a better shape it remains very tough indeed for Tier 2 players, which is where Mermaid currently sits,” the company said in its earnings report.
Subsea World News Staff