Kreuz’s Revenues Increase in 3Q 2012 (Singapore)

Kreuz Holdings Limited, an integrated subsea service provider for the oil and gas industry, today reported that the Group’s revenue increased 33.6% to US$45.5 million for the three months ended September 30, 2012 as compared to US$34.1 million in the previous corresponding period.

Net profit was US$10.4 million for 3Q2012 compared to net profit of US$5.9 million in 3Q2011. For the nine months ended September 30, 2012, net profit increased 33.0% to US$34.0 million, as compared to US$25.5 million in the previous corresponding period. This was achieved on a 35.6% increase in revenue to US$155.4 million in 9M2012 as compared to US$114.5 million in 9M2011.

The increases in revenue for both 3Q2012 and 9M2012 were driven mainly by higher revenue from related parties.

Kurush Contractor, Executive Director and CEO of Kreuz, said: “We are pleased with our results performance, achieved soon after reaching significant milestones this quarter. We were transferred to Main Board of the SGX-ST just last month and have successfully received a mandate from our shareholders for the building of a dynamic positioning multi-purpose support vessel. This state-of-of-the-art vessel that Kreuz is acquiring as part of our prudent fleet expansion strategy is capable for subsea operations at water depth of 3,000 metres.

“We remain committed to expanding our range of subsea services and enhancing our subsea capabilities in both shallow and deep water offshore oil and gas operations to capture more opportunities in the South East Asia, South Asia and other regions.”

Correspondingly, in comparison to 3Q2011, gross profit increased significantly by 83.6% to US$15.6 million while profit before tax was up by 83.0% to US$12.4 million in 3Q2012. Gross profit margin for 3Q2012 was up 9.4 percentage points to 34.4% with reduced reliance on third party vessels chartering while gross profit margin for 9M2012 held steady at 31.9%, from 32.5% in the previous corresponding period.

The Group continued to maintain a strong balance sheet with a low gearing ratio of approximately 22%. Net asset value per share increased from 21.92 US cents as at December 31, 2011 to 28.42 US cents as at September 30, 2012. Earnings per share increased from 1.15 US cents in 3Q2011 to 1.86 US cents in 3Q2012.

Proposed Dividend

Kreuz has proposed its first dividend since its listing in July 2010. “To reward our loyal shareholders, the Board of Directors is pleased to declare a one-tier tax exempt interim dividend of SGD0.011 cents per share. We are a growing company and will continue to maintain a balance between paying out dividends and retaining sufficient resources to ensure that we have sufficient capacity to take advantage of new growth opportunities in order to generate future growth for stakeholders,” added Kurush Contractor.

Outlook

Notwithstanding the uncertain global economic outlook, with the current level of oil prices, offshore marine exploration and production activities for new supplies and new sources of oil remain attractive and the overall outlook for the industry remains positive.

According to Infield’s Regional Perspectives Offshore Asia Oil and Gas Market Report to 2015, CAPEX for subsea market in Asia is expected to be more than US$7 billion between 2011 and 2015, compared to US$2.25 billion over the previous five years. Within the region, the countries that are expected to drive subsea demand include Malaysia, Indonesia, China and India1.

The Group shall continue to capitalise on current demand for its services from the oil and gas industry in Asia. The recent acquisition of a dynamic positioned, dive support vessel shall assist the Group in enhancing its market share in South East Asia and South Asia, and allow it to reduce dependence on third party assets over time. In addition, with the receipt of shareholders’ mandate to build a new dynamic positioning multi-purpose support vessel in October 2012, together with the recent transfer of the Group’s listing to the Main Board of SGX-ST, Kreuz is well-positioned for future growth.

On the geographic front, Kreuz, while remaining focused on Southeast Asia and South Asia, is actively bidding for projects in other regions.

“Backed by a healthy order book of approximately US$220 million and on the basis of a stronger platform in terms of assets, expertise track record and an increasing client base, the Group shall continue its quest towards future growth,” said Kurush Contractor.

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Press Release, November 12, 2012