Jaya Holdings Limited : Results for the Second Quater ended 31 December 2008

JAYA HOLDINGS LTD

13 Tuas Crescent

Singapore 638707

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Jaya's core businesses continue to

turn in robust operational performance

" Net Profit for 2Q FY09 rises 88% against 2Q FY08 to S$55.5m, excluding

S$28.8m in forex hedging losses SINGAPORE, 13 FEBRUARY 2009 FOR IMMEDIATE RELEASE

SGX-listed Jaya Holdings Ltd (Jaya, or the Group), a leading offshore support vessels chartering and shipbuilding group, reported a net attributable profit after tax and minority interests (PATMI) of S$26.7 million for the second quarter ended 31
December 2008 (2Q FY09). This is down from S$32.0 million in 2Q FY08, due to foreign exchange (forex) losses from hedging instruments and translation losses. Excluding such losses which amounted to S$28.8 million, PATMI would have been S$55.5 million for 2Q FY09 against S$29.6 million in 2Q FY08, an improvement of
88%.
For the 1st Half FY09, the Group achieved PATMI of S$35.8 million against S$74.2 million in 1st Half FY08. Excluding forex hedging losses, PATMI would have been S$101.8 million or 43% higher than the S$71.0 million recorded for 1st Half FY08.
Revenue in 2Q FY09 for the offshore shipping division climbed 31% to S$23.7 million - thanks to a firm fleet utilisation rate of 87% and a 39% increase in the average daily charter rate to S$10,986, even though the Group operated a smaller fleet of 25 vessels over the period. Better returns from higher-valued vessels and higher gains of S$39.7 million from ship sales sharply boosted the division's operational PATMI (excluding forex losses) to S$50.3 million. Even though forex losses of S$11.1 million brought PATMI down to S$39.2 million, this still represented a 152%
increase over the S$15.6 million recorded in 2QFY08.
Jaya's shipbuilding division saw lower revenue of S$13.8 million in 2Q FY09, as sales from four vessels under construction were recognised at an average rate of 9% -
much lower than the average recognition rate of 32% for seven vessels under construction and two completed ones for 2Q FY08. PATMI for the division would have been S$4.6 million if not for a forex loss of S$17.5 million, which resulted in a net loss of S$12.9 million against a profit of S$15.2 million previously.

JAYA HOLDINGS LTD

13 Tuas Crescent

Singapore 638707

Tel: [phone]

Fax: [phone]

Jaya's Chief Executive Officer, Mr Chan Mun Lye, said: "We are pleased that our core businesses have remained resilient and robust operationally, despite the global economic slow down and the lower crude oil price. Demand for our vessels, whether for charter or sale, has remained fairly healthy. This has helped Jaya to grow our base of recurrent income while continuing to reap gains from ship sales. We would have done well overall, if not for the impact of forex losses arising from volatile currency movements that affected the hedged positions we took to safe-guard ourselves against our production costs and operating expenses which are transacted in foreign currencies."
Jaya suffered a forex loss of S$28.8 million, which comprised S$29.6 million in realised forex losses, S$2.8 million gain in unrealised marked to market forex positions, S$2.6 million in unrealised translation losses on US dollar-denominated bank loans and S$0.6 million in revaluation gains from accounts receivables and payables in foreign currencies. Such forex and translation losses are expected to taper off as the majority of the hedges contracted previously have matured and assuming the currencies underlying the Group's costs remain stable at their current exchange rates with respect to the US dollar.
Mr Chan continued: "Jaya's dual business lines give us the flexibility to create the best value for our shareholders, either through ship sales or chartering. However, given the current uncertainties in the financial markets and global economy, we are taking a more prudent approach by moderating the pace of our new building programme and keeping a tight rein on costs and overheads."
The board of directors has proposed an interim ordinary tax-exempt dividend of 1.0 cent per share, a rate it deems to be prudent under the current circumstances. The interim dividend for FY08 was 5.5 cents per share.
ABOUT THE COMPANY www.jayaholdings.com

SGX mainboard listing: March 1992

Jaya's businesses are principally involved in the ownership, chartering and building of offshore support vessels.

Under its vessel owning and chartering arm, Jaya operates a versatile fleet of young, sophisticated vessels that cater to the oil & gas sector. Its current fleet has 25 vessels which service a wide base of reputable regional and international clients.

JAYA HOLDINGS LTD

13 Tuas Crescent

Singapore 638707

Tel: [phone]

Fax: [phone]

Under its ship building arm, it owns three shipyards, located in Singapore, Indonesia (Batam)

and China (Nantong Qidong) respectively and also has outsourcing arrangements with several third party shipyards in China. The ship building arm undertakes the design and construction of offshore support vessels which are mainly anchor handling tug supply vessels (AHTSes), platform supply vessels (PSVs), subsea operation vessels and accommodation/work barges.

FOR FURTHER ENQUIRIES MR CHAN FOOK KONG JAYA HOLDINGS

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MS LILIAN SIM OAKTREE ADVISERS

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