2014-01-07 03:01 AM
SINGAPORE--(BUSINESS WIRE)--Jan 6, 2014--Regulatory News:
EOC Limited (OSE:EOC):
?P 1QFY14 revenue driven mainly by recurrent income from long term charters of construction fleet
?P Strategic focus on fee-based project management and EPC services bearing fruit
?P Group is in stronger financial position to tap opportunities in high growth E&P markets
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 started its latest financial year on a firm foundation with a fourfold jump in net attributable profit to US$3.0 million for the first quarter ended 30 November 2013 (1QFY14).
During the quarter, the Group's revenue also increased by 5% to US$11.1 million. Most of EOC's revenue is now derived from recurrent income from the long-term charters of its construction fleet. However, a growing portion of its sales is expected to come from fee-based project management as well as engineering, procurement and construction services to the offshore production sector, in line with its renewed strategic focus.
EOC's Acting Chief Executive Officer, Mr Jon Dunstan, said: "This set of results is the fruit of our concerted efforts to improve the Group's profitability and strengthen its balance sheet. We are determined to grow both our recurrent as well as our services fee income base."
The Group is also in a stronger financial position today ?V its interest cover improved to 4.6 times in 1QFY14 from 2.7 previously, and net gearing has dipped below 1x. Cashflow from operating activities, backed by recurrent income from bareboat charters, held above US$2 million for the quarter.
"Now that we have established a firmer foundation, we have greater flexibility to tap opportunities in high growth E&P markets in the region, where demand remains robust," added Mr Dunstan.
The Group also jointly owns two floating production, storage and offloading (FPSO) vessels, Perisai Kamelia and the Lewek EMAS, which added US$1.4 million to earnings in 1QFY14. Last November, EOC's 49%-owned Perisai Kamelia commenced its charter contract with Hess Exploration and Production Malaysia B.V. Under the three-year charter contract secured via EOC's local Malaysian partner, Larizz Petroleum Services Sdn Bhd, the FPSO is deployed to support a gas production project in Malaysia's North Malay Basin. Signed in 2012, the contract is valued at about US$272.1 million, with extension options that could add another three years to the charter duration.
ABOUT THE COMPANY
Oslo Bors 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.
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CONTACT: EOC Limited
Mr. Chan Eng Yew
65 9792 8616
65 9475 3167
65 9634 7450
KEYWORD: EUROPE ASIA PACIFIC NORWAY
INDUSTRY KEYWORD: ENERGY OIL/GAS PROFESSIONAL SERVICES FINANCE CONSTRUCTION & PROPERTY OTHER CONSTRUCTION & PROPERTY
SOURCE: EOC Limited
Copyright Business Wire 2014
PUB: 01/06/2014 10:47 AM/DISC: 01/06/2014 10:47 AM