Kreuz Secures Multiple Subsea Contracts Worth USD 44 Million in South East Asia

Kreuz Holdings Limited , a subsea service provider for the oil and gas industry, announced that it has secured contract wins for various subsea works to be performed in Indonesia and Thailand.

The contracts totaled approximately US$44 million of which approximately US$12 million are from a third-party customer and approximately US$32 million are from the Swiber Group.

These contracts are expected to be executed within the period of 2QFY2011 to 3QFY2012.

These contract wins come in less than one month following Kreuz’s recent contract wins. On April 25, 2011, it announced a total contract win of US$24.8 million, with US$4.8 million awarded by a leading offshore company in the oil and gas business located in East Asia and US$20.0 million from the Swiber Group for projects located in Southeast Asia and South Asia.

Mr. Kurush Contractor, Executive Director and Chief Executive Officer of Kreuz Holdings, said: “This marks a quick succession of contract wins in less than one month for FY2011. It reflects our business strategy to secure more third party contracts and is a strong testament to our quality of work and our established track record. We believe that we have built strategic long term relationships with our clients based on trust and performance.

“This good momentum in contract wins follows our achievement of record earnings for 1QFY2011 and will spur us on to greater efforts as we continue to actively monitor growth opportunities that the present trend in the oil and gas industry offers. In addition, we shall continue to leverage on our strong relationships with end-customers to strengthen our portfolio and track record in the industry.

The Group recently reported that, compared to its results for the three months ended 31 March 2010, its profit for the three months ended 31 March 2011 (“1QFY2011”) jumped over 8- times to a record US$5.7 million on the back of a 292.2% increase in revenue to US$26.1 million.

Gross profit and profit before tax grew significantly by 481.0% and 706.0% to US$9.4 million and US$7.4 million respectively in 1QFY2011.

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Source: KreuzSubsea, May 23, 2011.