Kreuz Reports 1Q Results, Builds New Multi-Purpose Support Vessel
Kreuz Holdings Limited (“Kreuz” or together with its subsidiaries, the “Group”), an integrated subsea service provider for the oil and gas industry, reported that the Group’s net profit increased 5.4% to US$10.8 million for the first quarter ended March 31, 2013 (“1Q2013”) as compared to US$10.3 million in the previous corresponding period (“1Q2012”). This was achieved on a 1.4% increase in revenue to US$49.2 million from US$48.6 million over the same period.
Mr. Kurush Contractor, Executive Director and CEO of Kreuz, said: “Our revenue for this quarter was largely from third party and related company projects in India and Southeast Asia. In this quarter, we also entered into a shipbuilding agreement for a state-of-the-art DP MSV new build, which will further strengthen our position and asset capabilities. Going forward, we will continue to seek opportunities to increase the Group’s order book, establish new relationships, and enhance our track record and utilisation of assets.”
In line with the revenue increase, gross profit rose 3.7% to US$15.8 million. The cost of sales remained constant and gross profit margin for 1Q2013 held steady at 32.1%. EBITDA increased by 18.1% to US$16.5 million in 1Q2013 and accordingly EBITDA margin was up from 28.8% in 1Q2012 to 33.6% in 1Q2013.
The Group continued to maintain a strong balance sheet with a low gearing ratio of 17.0% as at March 31, 2013. Net asset value per share increased from 28.54 US cents as at December 31, 2012 to 30.49 US cents as at March 31, 2013.
Subsea developments will continue to account for an increasing share of global offshore activity and the outlook for the subsea market shows long-term growth potential according to industry source.
“During the last couple of years, Kreuz has performed several Subsea, Umbilical, Risers and Flowlines (“SURF”) related projects with both our own and third party vessels, resulting in Kreuz being recognised as a reliable SURF player. Kreuz shall continue to develop its expertise and execution skills in this market,” said Mr. Kurush Contractor.
State-of-the-Art Dynamic Positioning (“DP”) Multi-purpose Support Vessel (“MSV”)
The Group is currently building a state-of-the-art DP MSV with delivery expected in 2015.
The new vessel will be outfitted with a dynamic positioning system; a 18-man saturation diving system with twin bell and twin hyperbaric life boats; 3,000 metres active heave compensated 140 tonnes subsea crane; and deck space of approximately 1,300 square metres and accommodation of approximately 130 personnel.
The new vessel will have the capacity to operate two ROVs at water depths of 3,000 metres. The classification of the Vessel will be Det Norske Veritas with SPS code-COMF-V(3)-Clean Class.
The new build is undertaken as part of the Group’s business strategy to expand its range of subsea services through the acquisition of new operating assets, thereby enhancing its subsea capabilities in shallow, deep and ultra-deep offshore oil and gas operations in the world.
Press Release, May 09, 2013