Baku, Azerbaijan, Aug. 21
By Leman Zeynalova – Trend:
Direct costs of Topaz Energy and Marine of the United Arab Emirates (UAE) in H1 2019 increased by $24 million to $115 million, due to higher vessel utilization as well as the ramp-up in Solutions, Trend reports with reference to Topaz.
Income tax expenses increased by $4 million to $13 million from $9 million in the same period last year due to increased revenue, according to the Topaz report.
The report shows that cash generation as a percentage of EBITDA for H1 2019 was 85 percent (H1 2018: 78 percent).
The increase in working capital was driven by higher revenue during the period but increased at a significantly lower rate than revenue and EBITDA (working capital increased 24 percent in H1 2019 compared to the same period in 2018, while revenue increased 56% and EBITDA 83 percent), said the company.
“Investing activities include $94 million towards expansion CAPEX for our brand new subsea vessels, delivered from the yard in January 2019, and $11 million towards drydocking and upgrade CAPEX. Financing activities include drawdown on the facility linked to the subsea vessels of $83.3 million, a draw-down of $27.5 million from the RCF facility and senior secured debt repayment of $15 million,” reads the report.
Topaz Energy and Marine is a leading international offshore support vessel company providing logistics support and marine solutions to the global energy industry with primary focus on the Caspian Sea, the Middle East, West Africa and global subsea operations. Headquartered in Dubai, Topaz Energy and Marine operates an existing fleet of about 120 offshore support vessels with an average age of approximately nine years. Topaz Energy and Marine is a subsidiary of Renaissance, a publicly traded company listed on the Muscat Securities Market in Oman. In addition, Affirma Capital (Standard Chartered Private Equity) holds a minority position in the company. On 01 July 2019 the owners of Topaz announced the sale of the company to DP World. The transaction is subject to customary completion conditions and regulatory approvals and is expected to close in the second half of 2019.
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