EOC POSTS 1QFY11 REVENUE OF US$23.5M; SEES PICK-UP IN OFFSHORE EXPLORATION & DEVELOPMENT ACTIVITY
- 1QFY11 revenue of US$23.5m vs previous US$27.4m; optimal operation of Lewek Arunothai helped offset the standby period of Lewek Champion
- 2nd FPSO expected to be delivered in mid-2011 will enhance Group’s operational track record
- Expects sustainable recovery in demand for offshore construction and production activities to lift fleet utilisation
SINGAPORE, 12th January 2011
EOC Limited (EOC or the Group), a provider of offshore oil and gas support services in Asia, today reported a net profit of US$0.6 million for the first quarter ended 30 November 2010 (1QFY11) on a revenue of US$23.5 million which is a decline of 14% year-on-year.
The full operation of EOC’s first Floating, Production, Storage & Offloading (FPSO) vessel, Lewek Arunothai, in 1QFY11 helped to offset the standby period of the Group’s pipelay and heavy-lift construction vessel, Lewek Champion. The Group’s accommodation barges, Lewek Conqueror and Lewek Chancellor, were also well-utilised in the first quarter of 2011.
The Group’s 1QFY11 net profit was largely impacted by the corresponding operational costs of Lewek Arunothai which include depreciation, lower contribution from the Lewek Champion, and a higher interest expense of US$2.3 million which is 23% higher than 4QFY10.
Despite the lower net profit, EOC continued to generate a positive net cash flow from operating activities of US$6.3 million in 1QFY11 compared with US$14.9 million in the previous corresponding quarter.
Said Mr Lim Kwee Keong, EOC’s Chief Executive Officer, “There are clearer signs of an increase in exploration and development activities in the offshore oil & gas sector in the Asia Pacific, particularly in Australia’s Northwest Shelf, China, Malaysia, Indonesia, India, Papua New Guinea, and Thailand.”
“This bodes well for the current opportunities that we are vying for in both the construction and FPSO segments. We will continue to work on delivering our second FPSO on-schedule and are preparing Lewek Champion for alternate employment opportunities in 2QFY11. The increased activity level in the sector will also drive demand for our accommodation barges.”
This year, the Group will focus on keeping its fleet busy as well as chasing new projects in new target markets such as Africa and the Mediterranean.
ABOUT THE COMPANY
www.emasoffshore-cnp.com
Oslo Børs listing: October 2007
EOC Limited offers offshore construction & floating production services and installation & commissioning work as well as transportation services that support the entire life cycle of offshore oil & gas production.
It manages two heavy-lift accommodation crane barges, the Lewek Conqueror and the Lewek Chancellor; a dynamically positioned heavy-lift accommodation pipelay vessel, the Lewek Champion; and a floating production, storage and offloading unit, the Lewek Arunothai. These vessels are utilised in various support activities that last through facility development, production, operations, maintenance and abandonment.
The firm operates in Australia, Brunei, India, Indonesia, Malaysia, the Middle East, the Philippines and Thailand, and is an associate company of Singapore Exchange-listed Ezra Holdings Limited, the largest owner/operator of an integrated range of offshore support vessels for charter across a broad spectrum of the oil & gas offshore support services supply chain.
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
Other media releases on the company can be accessed at www.oaktreeadvisers.com