EOC Limited, a provider of offshore accommodation, construction and production vessels and services to the oil and gas (O&G) sector, has reported an increase in its net attributable profit to US$44.0 million for the second quarter ended 28 February 2014 (2QFY14) from US$1.4 million in 2QFY13.
Related: EOC signs sale and leaseback contract for Lewek Champion
The transaction proceeds from the US$200 million sale and leaseback arrangement for the Lewek Champion has enabled the Group to reduce its bank borrowings and strengthen its balance sheet, and has contributed to the reduction in its net gearing to approximately 3% as at 28 February 2014 from over 100% as at 31 August 2013.
Backed by its excellent operating record in the offshore accommodation and support sector, the Lewek Conqueror, one of the Group’s two accommodation and construction barges, recently clinched a contract worth close to US$100 million, which is expected to contribute to earnings from 3QFY14 onwards. The vessel will be deployed for a project in Southeast Asia that will run for a period of five years with a two -year extension option.
Goh added: “The long-term fundamentals of the oil and gas industry will continue to drive offshore development and production activity and thus demand for our construction and production assets and services. We are confident of leveraging our capabilities to build on our position in the accommodation and support market segment.”