12/04/2012
· Fully deployed construction fleet drives Group's sales
and earnings;
· Actively pursuing new opportunities to sustain high fleet
utilisation;
· Will continue to forge strategic partnerships and expand
beyond our traditional markets in the buoyant oil and gas
sector
EOC Limited (EOC or the Group), one of Asia's leading
providers of offshore construction and production services to
the oil and gas (O&G) sector, reported a sharp 49% jump in
Group revenue to US$92.2 million for the six months ended 29
February 2012 (1HFY12).
The Group's higher sales was driven by the high
utilisation of its construction fleet, which reported a
revenue of US$71.2 million in 1HFY12 against US$23.3 million
in the corresponding half year period in FY 2011. Segment
profit from EOC's construction arm came in at US$9.5
million, an increase of 305% year-on-year.
However, the strong showing of the construction fleet was
dampened by the Group's production division which
reported a segment loss of US$1.5 million on a revenue of
US$21.0 million. In 1HFY11, EOC's floating, production,
storage & offloading (FPSO) fleet contributed US$38.8 million
in revenue and a profit of US$10.6 million.
Mr Lim Kwee Keong, the Group's Chief Executive Officer,
said: "With oil prices remaining firm, analysts expect
Oil Company's E&P spending to grow in 2012. This will
drive increased demand for offshore oil and gas services
which is evident from the high level of activity in the
drilling rig market."
"This strong demand will ultimately generate follow-on
demand for our construction and production fleet over the
medium term. In this respect, we are looking to conclude a
long term charter in Asia for the Lewek Arunothai in the ing
months. At the same time, we will continue to actively seek
new strategic partnerships and opportunities to expand beyond
our traditional markets as well as strengthen our position in
the sector, in particular in the construction segment which
has demonstrated healthy prospects."
The Group generated strong net cashflow from operations of
US$41.0 million pared with US$7.1 million in 1HFY11, largely
due to the long term bareboat charters of the Lewek Champion,
its heavy lift pipe lay vessel, and one of its acmodation
work barge, the Lewek Conqueror.
EOC's other acmodation work barge, the Lewek Chancellor,
is currently deployed in West Africa with a French oil major
on a contract, which could see the vessel employed into 2013.
In addition, the Group's second FPSO, the Lewek EMAS,
menced her six year firm contract with Premier Oil Vietnam
Offshore B.V. in October 2011.
ABOUT THE COMPANY
www.emasoffshore-cnp.
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 panies and various
independent operators. In addition, these ties have brought
in a steady stream of repeat business and recurring ine.
The Group is an associate pany 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.
Ms. Carol Chong
Oaktree Advisers
65 9475 3167
carolchong@oaktreeadvisers.
Ms. Nora Cheng
Oaktree Advisers
65 9634 7450
noracheng@oaktreeadvisers.
Other media releases on the pany can be accessed at
www.oaktreeadvisers.
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