EOC REPORTS NET ATTRIBUTABLE PROFIT OF US$0.7M IN 1QFY13
- Chartered construction fleet on long term contracts rake in steady revenue of US$10.5m
- 41.7%-owned FPSO Lewek EMAS adds to Group earnings; Lewek Arunothai will commence on the Hess contract from second-half 2013
- Expects firm E&P commitments over the mid-to-long term
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 of US$0.7 million for the first quarter ended 30 November 2012 (1QFY13).
During the quarter, the Group’s sales was driven by the high utilisation of its construction fleet, which reported a steady revenue of US$10.5 million from long term bareboat charters. Currently, Lewek Chancellor and Lewek Conqueror, the Group’s accommodation work barges, are secured on relatively long-term charter contracts, while Lewek Champion, EOC’s flagship pipelay and heavy-lift construction vessel, is on a long-term bareboat charter until early 2015.
In 1QFY13, the Group’s second floating production storage and offloading (FPSO) vessel, Lewek EMAS, in which EOC holds a 41.7% stake through PV Keez Pte Ltd, added to Group earnings. EOC expects its first FPSO, the Lewek Arunothai, to commence its new contract from Hess Exploration and Production Malaysia B.V. (Hess E&P) in second-half 2013.
EOC’s Acting Chief Executive Officer, Mr Jonathan Dunstan, said: “With the successful conclusion of contract negotiations with Hess E&P for the redeployment of Lewek Arunothai in Malaysia, the Group is confident that it is back on firmer ground.
Moreover, as part of the share sale and purchase deal agreed between EOC and Perisai Petroleum Teknologi Bhd in late 2012, the acquisition of 50% stake in SJR Marine, will enable the Group to pursue opportunities in the Malaysian offshore oil and gas sector.”
On 30 November 2012, EOC entered into a share sale-and-purchase agreement with Perisai Petroleum Teknologi BHD for the sale of a 51% equity interest in the entities that own and operate Lewek Arunothai for US$89.3 million. In turn, EOC will purchase a 50% interest in SJR Marine (L) LTD (SJR Marine) for US$37.0 million. The difference will be settled by the issuance of 144.7 million new Perisai shares. SJR Marine owns Enterprise 3, a Derrick Lay Barge which specialises in the installation of offshore structures and pipelines which services the Malaysian offshore oil & gas industry.
Looking ahead at industry prospects, Mr Dunstan added: “With oil prices still above average budget planning prices, we expect exploration and production investments to remain firm over the mid-to-long term. This in turn will drive the demand for offshore construction and production services.”
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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