EOC: Market for Offshore Construction Services to Remain Buoyant

EOC Limited (EOC or the Group), one of Asia’s leading providers of offshore production services to the oil and gas (O&G) sector, posted a net attributable profit of US$2.1 million on a revenue of US$18.5 million for the first six months ended 28 February 2013 (1HFY13).

The Group’s sales were driven by its construction arm, which saw improved margin arising from its fleet. Currently, EOC’s construction and accommodation barges, Lewek Chancellor and Lewek Conqueror, as well as its flagship DP2 heavy-lift, pipe lay construction vessel, Lewek Champion, are on long term charters.

EOC’s Acting Chief Executive Officer, Jonathan Dunstan, said: “The Group expects the market for offshore construction services to remain buoyant as the momentum of E&P investments continues to be strong.

“In this respect, we are working to complete the partial sale and acquisition of the Lewek Arunothai FPSO and Enterprise 3 within the next few months, and continue to realign our resources to capture growth opportunities within the offshore construction sector whilst pursuing opportunities to deploy our FPSO know how through lower risk business models.”

On 30 November 2012, EOC entered into a share sale-and-purchase agreement with Perisai Petroleum Teknologi Bhd for the sale of a 51% equity interest in Lewek Arunothai. As part of the share sale-and-purchase agreement, EOC will in turn acquire a 49% interest in SJR Marine (L) LTD (SJR Marine). SJR Marine owns Enterprise 3, a Derrick Lay Barge which specialises in the installation of offshore structures and pipelines that services the Malaysian offshore oil & gas industry.

Lewek Arunothai, the Group’s first floating production supply and offloading vessel, is currently undergoing modifications at Keppel Shipyard in preparation for a project at Malaysia’s North Malay Basin.

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Press Release, April 12, 2013