In Q1 2017 Maersk Supply Service reported a loss of USD 22m. Though unsatisfactory, the result is better than expected due to increased vessel utilisation.
The market demand remains low due to the low oil price, and revenue in Q1 2017 decreased to USD 48m (USD 110m). The result was positively impacted by a reduction in total operating costs to USD 53m (USD 74m) due to fewer operating vessels and reduced running cost.
“Though the result is not satisfactory, it is better than expected due to a higher vessel utilisation from both long and short term contracts. We are focusing our efforts on customer engagement and we are beginning to see the results of our strategic sales approach in a market where competition is fierce,” says CEO of Maersk Supply Service, Steen S. Karstensen.
Despite an increase in vessel utilization, Maersk Supply Service expects the general market outlook for the industry to remain subdued in the near and mid-term. The offshore supply vessel industry continues to see a large number of vessel lay-ups globally, including Maersk Supply Service with eight vessels laid up at the end of the quarter. As a response to the supply and demand imbalance in the offshore supply market, Maersk Supply Service divested 10 vessels in 2016 and an additional 2 vessels during Q1 2017.
New Integrated Solutions business secures new revenue
Just six months ago, Maersk Supply Service launched a new Integrated Solutions business, and the business area is progressing well. Today the company announces its contract with Maersk Oil UK to project manage the towing and mooring installation and hook up services for the Culzean Project in the UK’s Central North Sea. Also in line with the new business area, Maersk Supply Service continues to successfully project manage work scopes of the two decommissioning projects Janice and Leadon in the North Sea.
“It is very rewarding to see that we are able to successfully offer Integrated Solutions centred around optimal use of our vessels. We continue to persistently pursue this business area and Culzean is our fourth major contract within Integrated Solutions. We will project manage the work scopes and sub-suppliers and utilize our own vessels and crews in all these contracts as we continue to build a strong track-record in the market,” says CEO Steen S. Karstensen.
During Q1 MSS also announced a long term partnership with Oceaneering International Inc. to provide remotely operated vehicles on MSS vessels. This is further building Maersk Supply Service’s diverse service offerings and demonstrating how partnerships can maximize the value of offshore project operations for customers.
Maersk Supply Service provides marine services and integrated solutions to the energy sector worldwide. Maersk Supply Service is the market leader in deep-water services such as anchor handling in ultra-deep water, mooring installations, rig moves and transport of equipment to drilling rigs and production units. Maersk Supply Service employs an international staff of around 1100 offshore and 200 onshore people. Headquartered in Lyngby, Denmark, Maersk Supply Service is represented globally with offices in Aberdeen, St. John’s, Rio de Janeiro, Lagos, Luanda, Singapore and Perth. Maersk Supply Service is a part of the stand-alone Energy division of A.P. Møller – Mærsk A/S. A.P. Møller – Maersk A/S employs roughly 88.000 employees across operations in 130 countries.