Japanese floater specialist Modec, which has secured several newbuild floating production, storage and offloading vessel awards in recent days, is forecasting a profitable 2023 with revenues totalling 389.13 billion yen ($2.89 billion).

The contractor observed that although the market still faces growing uncertainties due to soaring energy and raw material prices, it expects that oil companies will maintain their deep-water field development projects.

“The group expects steady demand for its main business of floating production, storage and offloading systems for oil and gas production – especially in the ultra-deep water large-scale projects in which it has a competitive advantage,” Modec said on Thursday.

The contractor has already had a profitable first quarter – reversing the year-on-year loss.

The company’s Q1 2023 profit was 1.255 billion yen ($9.33 million) versus a 2.042 billion yen loss in the comparable three months last year. Quarterly revenues were up 22.3% from one year prior at 99.472 billion yen.

Modec has already secured orders totalling $239.6 million for the three months ended 31 March.

This turnaround was attributed to revenues recognised from the progress of construction projects and its share of profit of investments, despite being partially offset by the improvement costs of asset integrity incurred for the FPSOs and floating storage and offloading vessel operating in Brazil.