Singapore offshore support vessel operator Atlantic Navigation is the latest offshore company to benefit from the improving offshore market.
The SGX-listed company has just reported first-half profit of $10.5m against a profit of $4.3m in the corresponding period last year.
Revenue for the six-month period was up 48% year-on-year to $43.6m as the shipowner benefitted from strong utilisation levels and charter rates across its fleet.
The United Arab Emirates-based group said it achieved an average vessel utilisation rate of 89.4% in the first half of 2023 as compared with 87.9% in the same period 12 months ago.
“Despite the current elevated interest rate environment and its impact on global economic activities, we are encouraged that we manage to sustain our commendable performance from 2022 into the first six months of 2023 with significant increases in revenue and profits and improving margins over the corresponding period last year,” chief executive Bill Wong said.
“With additions of Vega Egypt 1 [built 2017] and Team Clio [built 2019] in the fleet and the acquisition of a platform supply vessel under construction for delivery expected by March 2024, we will continue to exercise caution in the prudent use of gearing to finance the asset expansion to support the earnings growth of the group.”
Looking ahead, Atlantic Navigation said the offshore industry in the Middle East region continues to remain buoyant at a relatively high base in terms of industry utilisation and daily charter rates corresponding to the global oil prices at elevated levels currently at or above $80 per barrel.
However, it added that the market environment is expected to be impacted by the continual volatility in oil prices and economic recovery facing headwinds including rising interest rates to rein in high inflation.
Atlantic Navigation describes itself as an investment holding company with an integrated offering of marine logistics services as well as ship repair, fabrication and maintenance services.
It currently owns, operates, and charters its fleet of 19 OSVs including liftboats, anchor handling tug supply vessels, platform supply vessels, dive support vessels and crew boats.
In May, two major shareholders in Atlantic Navigation said they were “exploring strategic options” for their stakes in the company.
The two parties were named as Saeed Investment and current company chief executive of the Singapore-listed company Wong Siew Cheong.
Saeed Investment, which invested in the company in 2018 at around 9.9 US cents per share, holds 50.22%, while Wong has a direct stake of 31.82%.
