Singapore: Kreuz 2Q Net Profit Increases 9.6 Pct

Singapore: Kreuz  2Q Net Profit Increases 9.6 Pct

Singapore’s Kreuz Holdings Limited , an integrated subsea service provider for the oil and gas industry, today reported that the Group’s net profit increased 9.6% to US$14.6 million for the second quarter ended June 30, 2013 (“2Q2013”) on the back of higher turnover in 2Q2013. 

Kurush Contractor, Executive Director and CEO of Kreuz, said: “I am pleased to report the Group’s continuous growth with an increase in turnover and earnings in the second quarter of 2013. Kreuz remains committed towards delivering safe and efficient subsea services, meeting schedules and within budget. We shall continue our efforts in assuring our Clients of full accountability and satisfaction for the services we provide. ”

In 2Q2013, Group turnover jumped 24.7% to US$76.4 million from US$61.3 million in the previous corresponding period (“2Q2012”). In line with the increased revenue, cost of sales compounded 26.9% to US$54.1 million, and gross profit improved 19.7% to US$22.3 million. Administrative expenses increased 29.6% to US$3.3 million as a result of increased activities within the Group, with an improvement in net profit of 9.6% to US$ 14.6 million. On a half-year basis, Group revenue increased 14.4% from US$109.9 million to US$125.7 million, and net profit enhanced 7.8% from US$23.6 million to US$25.5 million.

The Group continued to maintain a strong balance sheet with a low gross gearing ratio of 14.0% as at June 30, 2013. Net asset value per share increased from 28.54 US cents as at December 31, 2012 to 33.11 US cents as at June 30, 2013.

Outlook

“Our order book currently stands at US$145 million, coupled with a high asset utilisation rate.  In line with the industry’s trend towards deepwater subsea work, we are pleased to note that  the ongoing construction of our new state-of-the-art Dynamic Positioned Multi-purpose  Support Vessel is on schedule with an expected delivery in 2015. The vessel with a capacity for  operating two deepwater ROVs (“Remotely Operated Vehicles”) and heave compensated  cranes for working in water depths of up to 3,000 metres, shall complement Kreuz’s ability in  performing deepwater SURF with the ongoing shallow water projects.  

“In the past quarter, Kreuz has successfully completed its first subsea dry hyperbaric habitat welding project, at a water depth of 140 meters, and overcoming technical challenges associated with welding at deep depths. Coupled with a number of ongoing Construction, IRM and SURF projects, Kreuz is well positioned to continue its quest for future growth,” said Contractor.

 

[mappress]
Press Release, August 13, 2013