EOC POSTS 3QFY13 PATMI OF US$2.9M

• Extends positive earnings trend from 1Q FY13, driven mainly by long‑term charters for construction fleet

• Completion of Perisai S&P deal by August for FPSO Perisai Kamelia; contributions expected from FY14

• Increases its focus on lucrative project management and engineering provision segment for floating production solutions

EOC Limited (EOC or the Group), one of Asia’s leading providers of offshore production services to the oil and gas (O&G) sector, reported a net attributable profit (PATMI) of US$2.9 million for the third quarter ended 31 May 2013 (3Q FY13), against a loss of US$8.7 million in the previous corresponding quarter. Revenue came in at US$12.3 million, driven by long-term charter contracts for its three construction vessels.

Through sustained efforts to improve profitability and rebalance its revenue mix, the Group has achieved positive earnings for a third consecutive quarter – doubling PATMI from the US$0.7 million posted for 1Q FY13 to US$1.4 million for 2Q FY13 and then lifting it higher still, by 114% quarter-on-quarter, to US$2.9 million for 3Q FY13. This achievement was due largely to improved margins arising from its construction fleet, as well as the absence of de-mobilisation costs for one of its floating production, storage and offloading (FPSO) vessels, which had impacted earnings in FY12.

EOC’s Acting Chief Executive Officer, Mr Jon Dunstan, said: “These positive earnings have been attained through deliberate efforts to steer away from low-margin construction projects and focus on long-term bareboat charters. We expect earnings to improve as we work diligently to de-risk our business model and once we complete the deal for our current FPSO.

Moving forward, with respect to our production business, the Group will offer services such as engineering, procurement and project management for FPSO and FSO conversion projects in addition to the provision of FPSO and FSO systems.”

On 30 November 2012, EOC entered into a share sale-and-purchase (S&P) agreement with Perisai Petroleum Teknologi Bhd (Perisai) for the sale of a 51% equity interest in entities owning and operating the Perisai Kamelia (the FPSO previously known as the Lewek Arunothai). As part of the agreement, EOC will acquire a 49% interest in SJR Marine (L) Ltd, which owns the offshore construction barge, the Enterprise 3. The deal should be concluded by August 2013.

The Perisai Kamelia will be deployed to Malaysia’s North Malay Basin. The vessel has arrived at the field,   after her upgrading works at Keppel Shipyard in Singapore and installation activities are underway . The Group expects this FPSO, after it achieves first gas and brings production to a steady state, to contribute to its bottom line in FY14.

Moving forward, Mr Dunstan added: “Following the completion of the S&P deal with Perisai, the Group will be able to de-gear its balance sheet. We will have the requisite financial resources to grow our production services and construction vessel portfolio, and enhance the stream of recurrent income that we are building through bareboat charters.”

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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