Topaz Energy and Marine, a offshore support vessel company, announced the results of its subsidiary Nico Middle East Ltd. for the 12 months ended December 31, 2013. The period has seen continued strong and profitable growth across the group’s activities with revenues up 22% and EBITDA up 17%. This growth is primarily attributable to the additional vessels that have joined the fleet and the improved utilization (94.5%) it achieved across its core fleet. Topaz won a number of new contracts during the period resulting in a total backlog of medium and long-term contracts amounting to $1.1B.
Seven new vessels, all PSVs, were added to the fleet in 2013, five of which delivered in 2014
Revenue increased by $67 million (21.6%), to $376.5 million in 2013 compared to $309.5 million in the year 2012. This increase is primarily due to:
(i) the addition of two new vessels along with the full year impact of five vessels purchased in 2012 contributing $49.7 million,
(ii) better utilization and increase in vessel day rates resulting in an increase of $9.8 million,
(iii) deployment of vessels in the Russian sector of the Caspian resulting in an increase of $6.1 million, and
(iv) proceeds from sale of three vessels resulting in an increase of $7.2 million. The increase in revenue was partially offset by loss of hire due to the sale of one vessel in 2012 ($2.2 million) and loss of revenue due to vessel off-hire or revised day rates on two of our vessels ($1.2 million and $2.3 million, respectively).
Results by Region
Caspian: In the year 2013, revenue increased by $56.4 million, or 32.9%, to $227.6 million compared to $171.2 million in the year 2012. This increase was primarily due to the addition of two new vessels contributing $7.5 million in the period and the full year impact of four vessels purchased in 2012 contributing $36.7 million, proceeds from the sale of one vessel contributing $6.7 million and deployment of vessels in the Russian sector resulting in an increase in revenue of $6.1 million.
Mena: In the year 2013, revenue increased by $10.9 million, or 13.4%, to $92.4 million compared to $81.5 million in the year 2012. This increase was primarily due to the full year impact of one vessel purchased in 2012 contributing $5.5 million and better utilization of vessels deployed in Saudi Arabia resulting in an increase of $5.4 million.
Global: In the year 2013, revenue slightly decreased by $0.3 million to $56.5 million compared to $56.8 million in the year 2012. This decrease was primarily due to loss of revenue of 2 AHTSVs working in West Africa.
EBITDA increased by $23.9 million, or 17.1%, to $163.4 million in the year 2013 compared to $139.5 million in 2012, due to:
(i) the addition of two new vessels along with the full year impact of three vessels (out of five) purchased in 2012 contributing $16.3 million,
(ii) better utilization and increase in vessel day rates resulting in an increase of $10.7 million,
(iii) deployment of vessels in the Russian sector of the Caspian resulting in an increase of $5.0 million and
(iv) proceeds from vessel sold contributing $2.8 million. The increase in EBITDA was partially offset by $1.1 million due to the full year impact of the bareboat cost of 2 vessels purchased in 2012, increase in overheads cost by $9 million which mainly relates to provision for doubtful debts and provision against advances.
Finance costs
Finance costs increased by $7.6 million, or 20.9%, to $44.0 million in the period compared to $36.4 million in the same period last year. The increase in interest expense was primarily due to an increase in secured debt as a result of the acquisition of new vessels, refinancing of certain existing debt along with interest charges on senior notes raised in Q4 2013 in line with the strategic plan.