November 14 - In its latest financial statement, Dockwise has reported third quarter profits slipped as a rise in revenue was not enough to offset increased costs.
The company posted a net profit of USD8 million for the quarter ending September 30, 2011, a 39 percent fall on the USD13.1 million recorded for the third quarter of 2010.
The slip came despite a rise in quarterly revenue to USD112.8 million, compared to USD108.9 million a year ago.
However direct costs for the quarter rose more than 12 percent to USD82.5 million, up from USD73.3 million last year.
In its results statement, Dockwise showed that the biggest rise came from contract related expenses which increased from USD38.8 million in the third quarter of 2010 to USD49.9 million this year.
The rise in costs resulted in Dockwise's gross profit falling to USD30.3 million, compared to USD35.5 million a year ago.
During the quarter Dockwise reported USD150 million in new contract wins and its total backlog stood at a record high of USD512 million as of September 30.
Dockwise chief executive Andre Goedee said: "Under continued difficult market conditions, we have delivered a sound financial performance in the third quarter."
"Quarterly orderbook growth was again firmly ahead of quarterly revenues; a basis for sustained long term growth."
Looking forward Dockwise said it expected to see "subdued" revenues in the conventional Heavy Marine Transport market carrying into 2012. It added there was also no upturn in the jack-up rig market but the outlook appeared more positive in the medium-term with the number of newbuilds requiring delivery from Asian yards from the second half of next year.
Goedee concluded: "We are delighted to again report a record total backlog, - thanks to our win of the BP Claire Ridge project now stretching out into 2015. Quarterly orderbook growth was again firmly ahead of quarterly revenues; a basis for sustained long term growth. Tendering activity continues to be strong, and in a period which has seen several successes; securing the transport of the FPSO Goliat on the Vanguard is an outstanding achievement. Dockwise will be proud to break its own record for the world's heaviest single cargo, and the award is the best endorsement of our decision, taken at a challenging time, to proceed with our new vessel."