High oil prices encourage Swiber to enlarge offshore fleet

Offshore support services provider Swiber Holdings is encouraged by the recent increase in crude oil prices and will expand its fleet to capture the continuing momentum of offshore activities.


Swiber expects to increase its offshore fleet to 54 by the end of this year, following the delivery of five support vessels and six construction vessels in 2010. The company currently operates a fleet of 51 vessels comprising of 39 offshore vessels and 12 construction vessels. “We are seeing a renewed cycle in oil and gas capex spending. We have enhanced our capabilities and have positioned ourselves to capture a significant portion of the market,” said Francis Wong, group ceo and president of Swiber.


The Singapore-listed company has presented a strong set of results for the first quarter due largely to contributions arising from contracts won since the first quarter of 2010. Revenue for the first quarter of this year jumped 78.2% year-on-year to $150.6m and net profit rose 46.4% to $11.9m. “We believe that the current high oil price will encourage greater exploration and production activities in the oil and gas industry. This will in turn provide tail wind to the offshore services sector,” Wong said.
(Source:http://www.seatrade-asia.com)