EOC'S CONSTRUCTION FLEET SHORES UP FY12 RESULTS; EXPECTS BETTER OVEREALL PERFORMANCE IN FY13
- Revenue of US$132.9m backed by high utilisation of construction vessels on long term charters
- Enters FY13 with greater earnings visibility as 80% of fleet are on long term charters; expects E&P activity level to remain strong
- Group revenues expected to see uplift from recently announced Lewek EMAS modifications
EOC Limited (EOC or the Group), a Singapore-based provider of offshore construction and production vessels, reported a mixed set of results from its two operating divisions for the financial year ended 31 August 2012 (FY12).
During the year, the Group successfully secured long term charters for two of its construction vessels thereby bringing all of its construction fleet on long term employment contracts. This is in line with the Group’s strategy to achieve greater earnings visibility. As a result, the construction fleet contributed US$8.9 million to profits in FY12 compared to a loss of US$1.6 million in FY11.
The turnaround in the Group’s construction division helped to shore up its overall performance for the year and accounted for over 80% of the Group’s revenue of US$132.9 million in FY12.
However, EOC reported a full year net attributable loss of US$12.6 million due mainly to the demobilisation cost of US$19.9 million for the Lewek Arunothai, its first floating, production, storage and offloading vessel (FPSO) which went off-hire in November 2011. The Group’s other FPSO, the Lewek Emas, has been employed on its six-year firm charter with Premier Oil (Vietnam) Offshore in the Chim Sao Field off Vietnam since October 2011.
EOC’s Chief Operating Officer, Mr Jon Dunstan, said: “FY12 has been a challenging year for EOC but we are optimistic on the outlook for FY13. The Group is working on the re-deployment of the Lewek Arunothai on a potential project in South East Asia after which we expect EOC’s fleet to achieve an improved level of utilisation, further enhancing earnings visibility for the Group.”
Mr Dunstan remains optimistic on prospects going forward. “With the heightened level of E&P activities over the past few years as well as oil prices likely to remain above the US$100 level in the short-to-mid term, we expect the Group to benefit from the anticipated increase in knock-on demand for services for oilfield development and production.”
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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