Singapore: Jaya Reports Quarterly Profit of $7.2 M

A Singapore-based offshore energy services provider, Jaya Holdings Limited has reported consolidated revenue of US$33.0 million and net profit of US$7.2 million for the second financial quarter ended 31 December 2013.

The Group’s revenue for the quarter under review was US$33.0 million. Excluding vessel sales, the quarter’s revenue was 31% higher than the previous corresponding quarter. This was due to improved charter utilisation of 83% compared to 80% charter utilisation in the previous corresponding quarter.

As the Group’s vessels engage in more complex operations, they also command higher charter day rates. During the quarter, one of the Group’s Platform Supply Vessels (“PSVs”) began deep-water survey operations offshore Mozambique whilst the other PSV began mobilisation to Tanzania for another customer. The Group’s fleet size was at 28 vessels as at 31 December 2013 as compared to 27 vessels a year ago.
For the 1H FY2014, the Group’s revenue was US$62.6 million. Excluding vessel sales, the Group’s revenue for 1H FY2014 was 21% higher than the previous corresponding period. The Group’s net profit for 2Q FY2014 was US$7.2 million, 11% higher than the previous corresponding quarter. Excluding the one-time charges and gains from vessel sales, the Group’s net profit for 2Q FY2014 was 16% higher than 2Q FY2013.
The Offshore Support Services Division recorded a net profit of US$10.2 million in the quarter under review compared to US$8.3 million in the previous corresponding quarter. The increase in net profit was attributable to improved charter utilisation of 83% vs. 80% and improved charter day rates on higher fleet value.

The Offshore Engineering Services Division recorded a net loss of US$2.7m during the quarter as there were only five vessels under construction compared to eight vessels under construction during the previous corresponding quarter.

For the 1H FY2014, the Group recorded a net profit of US$14.9 million against US$16.6 million in 1H FY2013. Excluding the one-time charges and gains from vessel sales, the Net Profit was 16% higher than that of the previous corresponding period.

Commenting on the results, CEO Venkatraman Sheshashayee said, “Our shift in focus to long-term charters of our fleet, delivering high quality, customised services to our clients has
paid off and we are pleased to report another quarter of healthy charter utilisation. Jaya has also successfully expanded its footprint to new markets to East Africa, with the first full quarter of operations for Jaya Vigilant in Mozambique,”   Sheshashayee added, “The offshore oilfield services market continues to be robust in many of the target markets in which we are operating. While seasonal factors in South East
Asia have had their usual impact, Jaya has successfully signed long-term contracts for three of our vessels to work in Saudi Arabia, increasing our presence in the Middle East. Charter utilisation for 3Q FY2014 is expected to be healthy. Our chartering order book has grown to US$327 million, including options to extend, from US$180 million a year ago and is expected to provide a strong recurring and sustaining stream of revenue for the Group.”

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Press Release, January 21, 2014