Kreuz Holdings Limited (“Kreuz” or together with its subsidiaries, the “Group”), an integrated subsea service provider for the oil and gas industry, reported that the Group’s net profit jumped 49.0% to US$39.7 million for the full year ended December 31, 2012 (“FY2012”) as compared to US$26.6 million in the previous corresponding period (“FY2011”). This was achieved on a 25.8% increase in revenue to US$193.4 million from US$153.8 million over the same period.
The increase in revenue for FY2012 was driven mainly by higher revenue from related parties.
Mr. Kurush Contractor, Executive Director and CEO of Kreuz , said: “ 2012 has been a good year for us, and we are glad that our hard work has been recognised by the major players in the oil & gas industry. Throughout the year, we have been strengthening our position and capabilities with the addition of a dynamic positioning multi-purpose support vessel (“DP MSV”) to our fleet. This allows us to enhance our offerings to our clients, reduce our reliance on third party vessels chartering and improve our cost competitiveness. ”
As a result, in comparison to FY2011, gross profit increased significantly by 34.7% to US$63.6 million while profit before tax was up by 37.6% to US$47.9 million in FY2012, and gross profit margin for FY2012 was up 2.2 percentage points to 32.9%.
For 4Q2012, net profit increased by 430.1% to US$5.7 million notwithstanding a marginal 3.1% decline in revenue to US$38.1 million.
The Group continued to maintain a strong balance sheet with a low gearing ratio of 20.1%. Net asset value per share increased from 21.92 US cents as at December 31, 2011 to 28.54 US cents as at December 31, 2012. Earnings per share increased from 5.25 US cents in FY2011 to 7.28 US cents in FY2012.
Outlook
“The subsea sector is maintaining its current trend of continued growth in the shallow, medium and ultra-deep waters as subsea technology becomes an economically viable solution for increasingly remote or ultra-deepwater fields. The high demand expected in the subsea sector, along with the need to reinvigorate aging offshore fields, augurs well for Kreuz’s subsea construction and installation services, and inspection, repair and maintenance (“IRM”) services.
Backed by a healthy order book of US$205 million and operating on a stronger platform in terms of assets, expertise, track record, and an increasing client base, the Group is primed for future growth,” said Mr. Kurush Contractor .
[mappress] Press Release, February 22, 2013