EOC reports strong growth in sequential net profit of US$7.4m for 1H FY11
n Earnings enhanced by improved performance at both production and construction arms
n Further boost expected as second FPSO potentially adds to earnings from 4Q FY11
n Fleet utilisation expected to remain strong due to robustness in energy demand across Sino-Asia and sustained activities in global offshore development
EOC Limited (EOC or the Group), a leading Asian provider of offshore construction and production services to the oil and gas sector, saw its sequential net profit surge from US$0.6 million to US$6.8 million for its second quarter ended 28 February 2011 (2Q FY11). Both its construction and production divisions contributed to the sharply improved earnings.
During the quarter, the Lewek Arunothai, EOC’s first floating, production, storage & offloading (FPSO) vessel, was in full operation and the Lewek Champion, its pipelay vessel, commenced its new charter with three Thai subsidiaries of Chevron, one of the world’s leading integrated energy companies, which helped raise Group revenue by 64% to US$38.6 million from US$23.5 million in 1Q FY11.
The steady stream of production income generated by the Lewek Arunothai helped elevate Group revenue above US$60 million during the first half of the current financial year (1H FY11). However, higher interest expenses, largely from one-off fees incurred, and the construction fleet’s softer utilisation during 1H FY11 (as a result of lower utilisation in 1Q FY11) resulted in a lower net profit of US$7.4 million against US$16.9 million in 1H FY10.
Mr Lim Kwee Keong, EOC’s Chief Executive Officer, said: “Our second FPSO, to be named the Lewek EMAS, will boost recurrent earnings starting from the second half of our fiscal year. Over the medium term, we are optimistic about demand for our production and construction vessels given the sharp hike in global development activity and the recent firming of oil prices. Furthermore, the surge in energy demand across Sino-Asia is becoming increasingly apparent, which will help keep fleet utilisation high as well.
“We remain focused on growth and are currently exploring opportunities to work with strategic partners that will allow us to tap new markets such as the North Sea and West Africa.”
Recent strategic tie-ups have already helped EOC make strides in its growth strategy. Its latest and largest FPSO, set to be christened on 15th April 2011, is a joint effort between EOC and its strategic partners Ezra Holdings Limited, KSI Productions Pte Ltd (an affiliated company of Keppel Corporation Limited)and PetroVietnam Transportation Joint Stock Company. The Lewek EMAS is contracted to Premier Oil Vietnam Offshore B.V. for deployment in Vietnam’s Block 12W for up to 12 years.
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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