12/07/2012
· EOC's Lewek Chancellor secures a second extension on
term contract in West Africa
· Healthy revenue of US$111.5 million with significant
contributions from construction fleet
· Remains positive over medium term prospects in the E&P
segment
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, has reported a high utilisation
of its construction fleet which will provide enhanced
earnings visibility for the Group. The Group also managed an
improvement in net operating cashflow of US$43.0 million for
this quarter compared to US$27.1 million in the previous
quarter.
Overall, the Group achieved a healthy revenue of US$111.5
million for 9MFY12, with its construction arm contributing a
robust US$89.2 million to sales.
One of EOC's construction and accommodation barges, Lewek
Chancellor, has recently secured another extension on the
current term contract, which is longer than the previous
extension period exercised by the client. The vessel is
expected to remain deployed in West Africa till October 2013
instead of June next year. The contract, first inked with a
French oil major as the end-user in June 2011, is now worth
US$24.5 million on the revised extension terms, compared to
the original value of US$20 million.
Mr Lim Kwee Keong, the Group's Chief Executive Officer,
said: "It has been our strategy to grow our recurrent
income base by focusing on longer-term leasing deals.
To-date, 80% of our fleet of construction and production
vessels is on relatively long term charter.
We remain confident of the opportunities and prospects for
EOC's offshore construction and production services, as
oil prices are likely to remain above Oil Companies'
average planning price over the medium term."
The Group is currently in discussion to deploy its first
floating production, storage and offloading vessel, Lewek
Arunothai, on a potential charter in South East Asia. If the
negotiations are successful, the vessel is expected to
undergo modifications to her existing configuration before
commencing production for the prospective client.
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
Other media releases on the company can be accessed at
www.oaktreeadvisers.com
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