Mermaid Maritime, a provider of subsea and drilling services to the offshore oil and gas industry, has seen its profit chopped by some 50 percent for the three-month period ended September 30, 2016.
Namely, Mermaid’s quarterly profit came at $7.5 million, down against profit of $15.3 milion in the corresponding period in 2015.
The Singapore-listed company generated revenue of $51.8 million versus $96.6 million same time last year. According to Mermaid, a 46 percent year-over-year drop in revenues was mainly due to slowdown in cable lay and lower utilisation of subsea fleet.
Additionally, for the first nine months of 2016, the company booked profit of $16.5 million on revenue of some $141 million, compared to profit of $16 million on revenue of $265 million. Revenue in the 9M 2016 was down approximately 47 percent, but it was offset by Mermaid’s high costs in 9M 2015.
The company reported quarterly vessel utilisation of 56 percent, down from 81 percent of the same period last year.
Furthermore, Mermaid said its shareholders approved to increase the share capital of the company by $70.6 million through an issue of 245,000,000 new ordinary shares.
Subsea World News Staff