Net profit up at Emas OffshoreNews // January 8, 2015
EMAS Offshore, formerly known as EOC Limited, reported net profit of US$148.4 million for the first quarter ended 30 November 2014 (1Q FY2015), a significant increase from the US$13.0 million for 1Q FY20141.
The higher net profit is boosted by a US$137.5 million bargain purchase gain arising from the completion of the business combination of EOC Limited and EMAS Marine on 3 October 2014 and also as a result of reverse acquisition accounting.
Net profit excluding the US$137.5 million arising from the combination was also higher at US$10.9 million, a 5% year on year increase from 1Q FY2014.
EMAS Offshore’s Chief Executive Officer, Jon Dunstan, said: “We have transformed into one of the leading offshore services providers in the Asia Pacific region, with total assets of over US$1.5 billion. With a larger platform, we can now enhance our service offerings throughout key segments of the offshore oilfield lifecycle, by combining our track record in offshore support vessel management with offshore engineering expertise, and cover a wider spectrum of offshore work, spanning development, production and decommissioning.”
Offshore support vessel utilisation remains stable at above 80 per cent. However, the group’s revenue of US$72.7 million for 1Q FY2015 was 9 per cent lower than the US$80.0 million achieved in 1Q FY2014 due to relative weakness in the platform support vessel (PSV) segment.
The group continues to see strong performance from its offshore accommodation vessels, which were fully utilised, as well as steady contribution from its larger assets in 1Q FY2015.
The group’s two floating production, storage and offloading (FPSO) vessels also continued to perform well, with high operational uptime of over 90 per cent.
Amidst the current volatility in oil prices, the group maintains a healthy backlog of about US$1.2 billion.
“We are keeping a close watch on the current oil price environment, and we are actively looking to streamline our operations to improve our bottom line. In the year ahead, we will focus on building our backlog of contracts that will provide us with good visibility and also, ensure greater operational efficiency and financial discipline to drive performance,” said Mr Dunstan.