EOC'S FOCUS ON TERM CHARTERS HELPS LIFT 9M FY09 MARGINS

 Reports net attributable profit of US$16.1m for the nine-month period  Together with prudent cost controls, gross margin jumps 12 percentage points to 53%  Positive on offshore production & construction sector outlook

SINGAPORE, 8 July 2009 EOC Limited (“EOC” or “the Group”) posted a healthy net profit of US$5.9 million for the third quarter ended 31 May 2009 (3Q FY09), bringing the net attributable profit for the nine-month period to US$16.1 million (9M FY09). The Group’s gross margin jumped to 53% in 9M FY09, a sharp 12 ppt hike from the previous period’s 41%, boosted largely by the term charter contracts which typically offer better margins. However, the absence of revenue from construction projects, coupled with the mandatory dry docking of the accommodation crane barge Lewek Conqueror resulted in a 33% lower 9M FY09 turnover of $54.1 million. Mr Lim Kwee Keong, EOC's Chief Executive Officer said, “We are positive on prospects in the offshore oil & gas sector and continue to see many opportunities for EOC in the production and construction segment. “Our strategy is to remain nimble, bidding for projects which offer good returns on our vessels and at the same time, grow a steady and visible income stream from long term charters. We will continue to drive growth in profitability and improve ROEs via potential capacity increase through acquisition or charters, as well as effective cost and margin management.” In March, the Group was awarded a five-year contract up to 2014 to provide offshore accommodation and construction support services to one of the world’s largest oil exploration and production companies operating in Brunei. The contract is worth up to US$68 million with extension options exercised.