EOC ENJOYS HEALTHY UTILISATION FOR CONSTRUCTION FLEET IN 1HFY12; EXPECTS IMPROVED BACKLOG DUE TO E&P SPENDING
- Fully deployed construction fleet drives Group’s sales and earnings;
- Actively pursuing new opportunities to sustain high fleet utilisation;
- Will continue to forge strategic partnerships and expand beyond our traditional markets in the buoyant oil and gas sector
EOC Limited (EOC or the Group), one of Asia’s leading providers of offshore construction and production services to the oil and gas (O&G) sector, reported a sharp 49% jump in Group revenue to US$92.2 million for the six months ended 29 February 2012 (1HFY12).
The Group’s higher sales was driven by the high utilisation of its construction fleet, which reported a revenue of US$71.2 million in 1HFY12 against US$23.3 million in the corresponding half year period in FY 2011. Segment profit from EOC’s construction arm came in at US$9.5 million, an increase of 305% year-on-year.
However, the strong showing of the construction fleet was dampened by the Group’s production division which reported a segment loss of US$1.5 million on a revenue of US$21.0 million. In 1HFY11, EOC’s floating, production, storage & offloading (FPSO) fleet contributed US$38.8 million in revenue and a profit of US$10.6 million.
Mr Lim Kwee Keong, the Group’s Chief Executive Officer, said: “With oil prices remaining firm, analysts expect Oil Company’s E&P spending to grow in 2012. This will drive increased demand for offshore oil and gas services which is evident from the high level of activity in the drilling rig market.”
“This strong demand will ultimately generate follow-on demand for our construction and production fleet over the medium term. In this respect, we are looking to conclude a long term charter in Asia for the Lewek Arunothai in the coming months. At the same time, we will continue to actively seek new strategic partnerships and opportunities to expand beyond our traditional markets as well as strengthen our position in the sector, in particular in the construction segment which has demonstrated healthy prospects.”
The Group generated strong net cashflow from operations of US$41.0 million compared with US$7.1 million in 1HFY11, largely due to the long term bareboat charters of the Lewek Champion, its heavy lift pipe lay vessel, and one of its accommodation work barge, the Lewek Conqueror.
EOC’s other accommodation work barge, the Lewek Chancellor, is currently deployed in West Africa with a French oil major on a contract, which could see the vessel employed into 2013. In addition, the Group’s second FPSO, the Lewek EMAS, commenced her six year firm contract with Premier Oil Vietnam Offshore B.V. in October 2011.
ABOUT THE COMPANY
www.emasoffshore-cnp.com
Oslo Børs listing: October 2007
EOC Limited offers offshore floating production services that support the full life cycle of offshore oil and gas (O&G) production. It owns and operates two floating production, storage and offloading (FPSO) vessels, the Lewek Arunothai and the Lewek EMAS, and a fleet of construction vessels. The Group has conducted operations in Australia, Brunei, India, Indonesia, Malaysia, the Middle East, the Philippines, Vietnam and Thailand, and continues to do so currently.
EOC’s successful operational and HSE (health, safety and environment) track records have enabled the Group to establish strong working relationships with leading international oil majors, national oil companies and various independent operators. In addition, these ties have brought in a steady stream of repeat business and recurring income.
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. Chan Eng Yew
EOC Limited
65 9792 8616
engyew.chan@emasoffshore-cnp.com
Ms. Carol Chong
Oaktree Advisers
65 9475 3167
carolchong@oaktreeadvisers.com
Ms. Nora Cheng
Oaktree Advisers
65 9634 7450
noracheng@oaktreeadvisers.com
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