Singapore: Kreuz Bags USD 35 Million Subsea Installation Contracts

Kreuz Holdings Limited, a subsea services provider for the oil and gas industry, today announced that the Group has been awarded subsea installation contracts worth approximately US$25 million, by a leading offshore construction company in the oil and gas business located in Middle East. The contract wins also come with an added optional scope of US$10 million for associated works.

Subsea installation works shall commence 3QFY2011 and scheduled to be completed in 2QFY2012. To date, the Group has secured new contract wins totaling US$93.8 million in FY2011 for firm work. 

Mr. Kurush Contractor, Executive Director and Chief Executive Officer of Kreuz Holdings, said: “The contract wins, notwithstanding a competitive subsea market, are encouraging. These demonstrate the Group’s ability to perform, deliver to expectations and meet job completion schedule and budget. We shall continue to leverage on our strong relationships with immediate and end-customers to strengthen our portfolio and track record in the industry. The contract wins come less than three months from our last award and will add to our existing order book of approximately US$115 million as of July 29, 2011 for secured contracts.”

The contract wins follow the Group’s achievement of strong earnings for 2QFY2011. On July 29, 2011, the Group had reported profits of US$14.0 million for the three months ended June 30, 2011, a quadruple increase from US$3.1 million for the three months ended June 30, 2010 . Revenue increased by 291.8% from US$13.9 million to US$54.4 million for the same period. In terms of recent awards, the Group had on May 23, 2011, secured subsea contracts worth approximately US$44 million from a third-party customer and Swiber Holdings Limited for works to be performed in Thailand and Indonesia respectively. On April 25, 2011, Kreuz had also secured subsea installation contracts totaling approximately US$24.8 million from a leading offshore company in the oil and gas business located in East Asia as well as from Swiber, for projects located in Southeast Asia and South Asia.

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Source: Kreuz, August 22, 2011