Singapore-listed offshore services provider Swiber Holdings (Swiber) dived into a loss of USD3.2 million for the second quarter ending 30 June 2015 from a profit of USD10.1 million in the same period a year ago.
Its revenue declined 8.7% to USD200.2 million, compared with USD219.3 a year ago, dragged down by fewer contracts being executed in the period.
Swiber also recorded an increase in costs, with its operating expenses skyrocketing 309.7% to USD1.4 million from USD0.34 million a year ago.
“The oil and gas industry has turned increasingly cautious in response to the weaker oil price environment; major oil companies have been aggressively pursuing cost reduction or delaying some of their projects. This situation is inevitably leading to price pressures within the oilfield services supply chain,” said Swiber in its filing to the Singapore Exchange.
Despite the bearish market sentiment, Swiber continues to see opportunities in South Asia, Southeast Asia, West Africa, and Latin America and is working actively and prudently on new project tenders in these target markets.
The company will strengthen its capabilities in higher-value engineering, procurement, installation, construction (EPIC) services, improve its operational performance, and maximise cost efficiencies.