EOC STARTS FISCAL YEAR 2012 ON A POSITIVE NOTE

• 1Q FY12 net attributable profit improve to US$8.5m, against US$0.6m previously
• Earnings lifted by full fleet utilisation and maiden contribution from 2nd FPSO, the Lewek EMAS
  
• Group will stay focused on growing recurrent income base; demand for offshore construction & production services remains robust

EOC Limited (EOC or the Group), one of Asia’s leading providers of offshore production services to the oil and gas (O&G) sector, has delivered a set of strong results for the first quarter ended November 2011 (1Q FY12), with sturdy contributions from both its construction and production divisions.

The full utilisation of its fleet and a strong maiden contribution from the Lewek EMAS – the Group’s second floating, production, storage and offloading (FPSO) vessel – propelled net attributable profit for 1Q FY12 to US$8.5 million, improved from the US$0.6 million posted for the previous corresponding quarter. The Lewek EMAS, in which EOC holds a 41.7% stake through PV KEEZ Pte Ltd, alone added about US$1.0 million to the bottomline from the 6 weeks that the vessel has been operating.

Meanwhile, Group revenue rose 159% year-on-year to US$60.8 million in 1Q FY12, contributed by construction project revenue of US$26.7 million, as well as increased contributions of US$6.4 million from EOC’s heavy-lift accommodation pipelay vessel, the Lewek Champion.

Mr Lim Kwee Keong, the Group’s Chief Executive Officer, said: “This set of results reflects our ongoing efforts to strategically grow the Group’s recurrent income base and improve earnings visibility.

In the construction division, for instance, we have been concentrating on longer-term leasing contracts instead of the previous lump-sum offshore engineering, procurement and installation projects for which our margins are lower in today’s market. Furthermore, we are actively working on opportunities throughout the value chain of the floating production segment, either on our own or jointly with strategic partners.”

Two of the Group’s construction vessels – the Lewek Champion, its heavy-lift pipelay vessel, and the Lewek Conqueror, an accommodation work barge – are currently engaged in relatively long-term charters. In addition, the Lewek Chancellor, its other accommodation work barge, is busy in the West Africa, where she is deployed on a contract which could see her employed for up to an additional sixteen months.

Discussing prospects for the industry and the Group, Mr Lim noted: “Exploration and production (E&P) spending by oil majors, as well as national and independent oil companies, is expected to remain strong in 2012, underpinned by firm crude oil prices. This in turn will feed into a stream of contract opportunities for EOC, for the provision of FPSOs and associated operations and maintenance services, as well as offshore construction work.

For our production division, our first FPSO, the Lewek Arunothai recently concluded her charter in Thailand, and we are currently assessing a number of prospective redeployment opportunities. The Group aims to maintain a healthy level of utilisation for our fleet and our approach to this will continue to take into account each prospective project’s longer-term benefits.”

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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