Offshore services provider EMAS Offshore has reversed into the red in the first quarter of its financial year 2016 amidst challenging operating conditions underpinned by a volatile oil price environment.

Net loss for the three months ended 30 November 2015 was recorded at $3.23m, as against the profit of $148.4m in the same quarter of the previous financial year.

Singapore-headquartered EMAS Offshore posted a 32% year-on-year fall in first quarter revenue of $49.75m, due mainly to softer demand for the group’s OSVs on the back of general weakness in the overall oil and gas industry.

During the first quarter of its financial year 2016, average utilisation for EMAS Offshore OSVs was at 67%. The group commented that it is likely to experisnce lower charter rates and/or decreased vessel utilisation going forward.

“The global situation in the oil and gas industry continues to obscure certainty on where oil prices will land and, like all other offshore services players in the industry, we have been impacted in this current downcycle,” said Adarash Kumar, ceo of EMAS Offshore.