EOC POSTS PROFIT TURNAROUND IN 3QFY11; POSITIVE OUTLOOK ON FUTURE PROSPECTS
- 3QFY11 US$3.2m profit due to improved contributions from both the construction and production divisions
- Improving recurrent production income will continue to bolster earnings visibility and growth
- Group plans to tap new opportunities in Europe and West Africa and expand via strategic alliances
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, turned around with a net profit of US$3.2 million for the third quarter ended 31 May 2011 (3QFY11), compared to a net loss of US$3.4 million in the previous corresponding period. Both the construction and production divisions contributed to the improved earnings.
During the quarter, the Group’s pipelay and heavy lift construction vessel, Lewek Champion, was fully deployed, installing offshore platforms and pipelines in the Gulf of Thailand for new clients – Chevron Offshore (Thailand) Limited, Chevron Thailand Exploration and Production, Ltd and Chevron Pattani, Ltd – which are subsidiaries of Chevron Corporation, one of the world’s leading integrated energy companies.
EOC’s first floating production, storage & offloading (FPSO) vessel, Lewek Arunothai, has been generating steady recurrent income since 1QFY10 and performed well in the quarter under review. With its major construction and production assets fully operated, the Group reported a 179% jump in its 3QFY11 revenue to US$51.7 million. On the back of the sterling revenue performance, the Group generated a net cashflow from operating activities of US$20.0 million compared with US$12.5 million in 3QFY10.
Mr Lim Kwee Keong, EOC’s Chief Executive Officer, said: “We are pleased that EOC has delivered well in 3QFY11. With the latest contract clinched by Lewek Chancellor and our upcoming FPSO, Lewek EMAS, adding to the steady income from Lewek Arunothai, the Group looks forward to a more robust performance in 4QFY11. Looking ahead, improving recurrent production division income will bolster the Group’s earnings visibility and growth.
We are optimistic about the demand for our production and construction vessels as global development activity picks up to meet the growing energy needs in the Sino-Asia region. To fuel growth and diversify our revenue foot print, we plan to expand to Europe and West Africa with strategic partners to tap new opportunities in these areas.”
Last month, EOC’s unwavering efforts to tap into new markets bore fruit when the Group’s accommodation and construction barge, Lewek Chancellor, bagged a new contract worth approximately US$20 million from a French oil major. Under the contract, the vessel will provide accommodation and support services for a maintenance project in offshore Africa. The charter covers a primary term of eight months, followed by extension options of four months and thereafter, twelve months.
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
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