World’s largest offshore accommodation rig supplier Prosafe turned profitable in the first quarter of 2018, after posting a loss in the corresponding period of 2017.
First net quarter profit in 2017 was $16 million, compared to a loss of $19 million a year ago.
The company’s EBITDA in 1Q 2018 of $49.2 million was higher than last year’s $38.2 million, despite lower fleet utilization, Prosafe said. The fleet utilization was of 33.3 percent in the quarter, down from 40 percent a year ago.
However, Prosafe says it’s managed to increase EBITDA by lowering operating expenses through continuous cost reduction exercises and the revenue adjustment relating to the adaption of IFRS 15.
During the quarter, Prosafe won a five-month contract for the Safe Caledonia flotel, for work on the Clair Ridge project, scheduled to start later this month.
Despite this, Prosafe said it continues to see low incremental activity in the North Sea in the short-term. Nevertheless, the company has noted an increase in inquiries outside the North Sea, especially looking at Brazil and Mexico.
“It is anticipated that these two markets will be key in the longer term with opportunities expected to arise first in Brazil. While proactively evaluating different market requirements, Prosafe continues its efforts on cost efficiencies and business improvement so as to ensure the company is well placed before the market upturn. Indications remain that the general demand for accommodation services will gradually pick up from 2019,” the company said.