Oslo-listed floating production contractor BW Offshore saw an improvement in first-quarter profit on higher operating revenue for its floater fleet compared with the same period a year earlier.
The company boosted revenue by 10% over the year to $237.3 million, yielding an operating profit of $57.2 million versus $51.5 million a year ago despite higher operating costs, with net profit up at $33.1 million, compared with $28.7 million in the same period of 2013.
BW’s result benefited from a revised depreciation schedule based on a redefinition of the useful life of its fleet that cut depreciation losses by $11.2 million in the quarter.
The company’s revenue was buoyed by average uptime of 99.5% during the quarter for its 18-vessel fleet of owned and operated units, including 14 owned floating production, storage and offloading vessels.
BW is hoping to secure a further extension for its Abo FPSO, currently working for Eni subsidiary Agip off Nigeria on a short-term charter that expires at the end of June with an option to extend it to the end of the year.
The contractor recently secured an extension for its Sendje Berge FPSO off Nigeria with Addax Petroleum, while also winning a $2.3 billion FPSO newbuild contract with Premier Oil for the Catcher field off the UK.