LOW oil prices took a bite out of CH Offshore's Q2 FY15/16 earnings, with net profit plunging 80.8 per cent to US$1.05 million for the three months ended Dec 31, 2015.
Revenue dropped 36.5 per cent to US$5.59 million. Explaining the challenging environment, CH Offshore said: "The continued low oil price has caused exploration and production companies to reduce their capital spending for offshore projects, which has resulted in a decrease in activity for offshore support vessels.
"Overall fleet utilisation for the offshore support industry has fallen significantly, increasing the number of available vessels that are pursuing the fewer opportunities."
It also said that for H1 FY15/16, two vessels were on short-term jobs and another two underwent a compulsory major overhaul.
Earnings per share stood at 0.32 US cent for H1 FY15/16 - down from 1.56 US cents in the same period the year before.
A cash dividend of 2.5 Singapore cents per share was declared, compared to none in the previous corresponding period.
As for its 12-month outlook, CH Offshore said: "The low oil price environment is expected to extend through 2016 and potentially, beyond. The group will continue to decrease operating and overhead costs and focus on maintaining and gaining fleet utilisation."