Coronavirus company news summary – Modec reports loss despite revenue growth – Weatherford reduces losses in September quarter

5 November 2020 (Last Updated November 5th, 2020 09:20)

5 November

Japanese offshore floating systems supplier Modec recorded a loss of $47.6m in the January-September period owing to the adverse effect of Covid-19 pandemic during Q1. The revenue for the period, however, increased to $2.19bn compared to $2.09bn in 2019 as construction progressed on six floating, production storage and offloading vessels. Modec projected the revenue guidance for 2020 at $2.67bn, even as it decreased its operating profit estimate to $162.4m.

Indonesian government’s upstream regulator SKK Migas launched a slew of economic packages for the oil and gas sector to maintain investment flow to counter the slump in activity and market disruption caused by the pandemic. SKK Migas reduced the oil output target for 2020 to 725,000bpd, while gas production target is pegged at 5.72 billion cubic feet per day.

US-based oil and gas firm Weatherford registered a loss of $174m for Q3, a substantial decrease from the $581m loss it posted in the second quarter. The company’s Q3 revenue dropped marginally to $807m, from $821m in the previous quarter as the oil and gas sector started to recover from the slump triggered by the coronavirus pandemic.

The profits of refinery operators in Asia who are producing very low sulphur fuel oil (VLSFO) hit a six-month high as decrease in outputs kept supply low. Demand for shipping fuel reached pre-Coivd-19 volumes, as majority of ports returned to normal operations. While refined fuels such as gasoline, jet fuel and gasoil bore the brunt of the pandemic induced lockdown restrictions, residue fuels used in electricity generation and shipping have continued to maintain their demand levels.