SINGAPORE - Atlantic Navigation Holdings (Singapore) narrowed its losses for the first quarter ended March 31 with a net loss of US$63,000, compared to a net loss of US$2.44 million, on the back of a surge in revenue from marine logistics services.
Revenue more than doubled to US$12.25 million as the marine logistics services segment recorded a turnover of US$11.9 million, an increase of US$6.6 million or 124.4 per cent from a year ago.
This was thanks to a higher rate of utilisation of owned vessels, coupled with the deployment of the group's lift-boats, the deployment of three front-runners, including a cross chartered vessel to support a long-term contract with a Middle Eastern National Oil Company (NOC), and the provision of vessels to support a joint venture project for the purchase and removal of decommissioned offshore and onshore facilities.
But higher income tax expenses during the quarter kept the group in the red.
Providing an update on its business, Atlantic Navigation said that it had in February, together with its South Korean consortium partner, completed mobilisation, deployment of equipment, infrastructure set-up and personnel for both the onshore and offshore phase of a US$45.2 million project for the removal of decommissioned offshore and onshore facilities.
Operational work on the onshore phase of the project started in March 2018, and operational work on the offshore phase started in May 2018. The project is expected to be completed by the end of fiscal 2018, subject to favourable weather conditions.
"With the increase in the oil price and Middle Eastern NOC's commitment to increase production levels, activity in the Middle East exploration and production sectors (our primary markets) is increasing and new field development programmes which were on hold are starting up again," the group said.
"We expect charter rates in our region to remain competitive but we expect our fleet utilisation to improve due to the deployment of seven new vessels to support contracts secured by the group and a greater demand across the region in line with the increase in activity and stated growth and production strategies of the Middle Eastern NOCs."
The group said it is expecting performance to improve from the third quarter onwards due to the planned deployment of the seven new vessels and higher utilisation for the rest of the fleet in line with the expected increases in demand for vessels to support the Middle Eastern NOC's plan for higher production.