EOC Returns to Black

EOC Limited (EOC or the Group), one of Asia’s leading providers of offshore production services to the oil and gas (O&G) sector, has returned to the black with a net attributable profit of US$11.1 million for the financial year ended 31 August 2013 (FY13), compared to a net loss of US$12.4 million in the previous corresponding period.

The Group’s solid turnaround was achieved despite revenue dipping to US$43.1 million from US$132.9 million in FY12, as EOC moved decisively away from construction projects to focus on growing recurrent income from the long-term charters of its construction and production assets coupled with the provision of more rationalised floating production related services.

EOC’s Acting Chief Executive Officer, Jon Dunstan, stated: “The turnaround is the result of our concerted efforts to sharpen our business strategy to quickly arrest the losses seen in FY12. We tapped into our wide network to successfully redeploy a major production vessel into the high growth Malaysian market under a fast track programme. We also realised first revenue from our suite of rationalised production service offerings.”

The Group’s three accommodation and construction barges are currently on charters to international oil majors as end clients for the execution of various offshore projects in Brunei, Republic of Congo and the Gulf of Thailand. In addition, Lewek EMAS, its floating, production, storage and offloading (FPSO) vessel, recently completed its second year of operations under a six-year firm charter in Vietnam’s Chim Sao Field having produced over 16 million barrels of oil for its client coupled with an excellent safety track record whilst doing so.

With the completion of the sale-and purchase agreement (SPA) to sell 51% of entities owning and operating the FPSO Perisai Kamelia (formerly known as Lewek Arunothai) and acquisition of 49% stake in Enterprise 3, an offshore construction barge, the Group has carefully positioned this vessel into the growing offshore sector in Malaysia and seized the opportunity to establish a major presence there.

This deal with Perisai Petroleum Teknologi Bhd has allowed the Group to de-risk its FPSO business model and de-gear its balance sheet, where the net debt to equity ratio has fallen to 1.0 times as at end August 2013 from 2.0 times a year ago.

Dunstan added: “The Group is firmly on the path to sustainable earnings and we are confident of repeating our performance in this current year FY14. With improved financial strength, we are on the lookout to grow our asset base again and expand our stream of long term recurrent income, which will be further supplemented by new fee-based income from engineering, procurement and construction projects in the offshore production sector .”

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Press Release, October 24, 2013