EOC REPORTS PATMI OF US$3.9M FOR 3Q FY14
- Enters 4Q FY14 with improved earnings visibility with accommodation & construction vessels and FPSOs on long term charters
- Increased financial flexibility will enable Group to build capabilities and position in robust offshore accommodation market
EOC Limited (EOC or the Group), a provider of offshore accommodation, construction and production vessels and services to the oil and gas (O&G) sector, reported a net attributable profit (PATMI) of US$3.9 million for the third quarter ended 31 May 2014 (3Q FY14), compared with US$2.9 million in the previous corresponding quarter.
Group revenue came down slightly to US$10.8 million during the quarter as the Lewek Chancellor transitioned to a new two-year charter (with an option for an additional year) in Africa. Both of the Group’s accommodation vessels were fully deployed as at May 2014, with the Lewek Conqueror having secured a five-year project in Southeast Asia earlier.
EOC’s two floating production, storage and offloading (FPSO) vessels operated at almost 100% uptime during the last financial quarter. The 41.3%-owned Lewek EMAS is operating in offshore Vietnam while the 49%-owned Perisai Kamelia has been deployed to a fast-track gas production project in the North Malay Basin in Malaysia. As a result, contributions from associates rose sharply to US$4.5 million, from only US$0.1 million in 3Q FY13.
EOC’s Chief Financial Officer, Mr Jason Goh, said: “The Group’s earnings visibility has improved now that both our accommodation vessels and our FPSOs are on long-term contracts and are performing well. Our improved balance sheet will give us the flexibility to capitalise on opportunities in the accommodation and support segment.”
EOC entered into a US$200 million sale-and-leaseback arrangement for the Lewek Champion in February 2014. This might have affected operating costs during the quarter; however, the Group’s net gearing improved significantly, coming in at 15% at end-May, compared with over 100% as at 31 August 2014 and a peak of 230% as at 31 May 2013.
The Group expects activity levels in the offshore O&G sector to be well supported and to see robust demand for accommodation and support services, in view of increased mid to deepwater operations and ageing production infrastructure in Asia.
ABOUT THE COMPANY
Oslo Børs listing: October 2007
EOC Limited is a provider of offshore accommodation, construction and production vessels and services. The Group is headquartered in Singapore and operates across key markets of exploration and production activities in the Asia-Pacific region, such as Brunei, Indonesia, Malaysia, Vietnam and Thailand.
The Group operates accommodation and/or construction units and floating production, storage and offloading (“FPSO”) systems and its excellent operational and HSE (health, safety and environment) track record has allowed it to establish strong working relationships with leading international oil majors, national oil companies and various independent operators.
The Group is an associate company of Singapore Exchange-listed Ezra Holdings Limited, a leading global offshore contractor and provider of integrated offshore solutions to the O&G industry.
FOR FURTHER ENQUIRIES
Mr. Jason Goh
EOC Limited
65 6590 8209
investor_relations@emasoffshore-cnp.com
Ms. Carol Chong
Oaktree Advisers
65 9475 3167
carolchong@oaktreeadvisers.com
Ms. Nora Cheng
Oaktree Advisers
65 9634 7450
Other media releases on the company can be accessed at www.oaktreeadvisers.com