Singapore: Swiber Achieves Record Performance in 2011
Swiber Holdings Limited, a world class integrated construction and support services provider to the offshore oil and gas industry today reported record performance in revenue of US$654.5 million for the full year ended December 31, 2011 (“FY2011”).
The Group achieved a 7.1% increase in net profit to US$42.2 million in FY2011, in tandem with a 40.5% increase in revenue to US$654.5 million over the same year.
The revenue increase was driven by progressive revenue recognition from various contracts that are concentrated in Southeast Asia and South Asia, awarded to the Group in the last two years.
The increase in net profit was mainly due to higher revenue and lower other operating expenses.
This was offset by higher administrative expenses in line with business expansion, a decrease in gain on asset disposal, higher finance cost, as well as lower share of profit from associates and joint ventures.
Mr. Francis Wong, Group Chief Executive Officer and President of Swiber said, “We are excited to have achieved a record topline performance shortly after our key milestone of hitting over US$1 billion in order book. Our strategy of providing a full suite of integrated services is gaining traction among our clients, and our healthy backlog is a reflection of our strength in the key geographical markets.
We will continue to press on in expanding our capabilities to further entrench our position as the pre-‐eminent offshore oil and gas services provider in the Asia Pacific and Middle East.
“Our fundamentals remain sound, backed by a buoyant offshore oil and gas outlook and a strong order book visibility.
With offshore projects spread out over the next couple of years and strong asset and resource capabilities in place, this gives us a solid footing to further entrench our leading market position.”
Growth Strategies and Outlook
Commented Mr. Wong, “According to IEA, oil demand is expected to rise to 90.3 million barrels a day in 2012 and 99 million barrels a day by 2035 as countries such as China and India have an interest in fulfilling as much domestic demand as possible, so as to boost energy security. There is also the constant need for repair and maintenance of oilfield infrastructure to ensure smooth production from the wells.
These should translate into robust demand for offshore support services, which we are well-‐positioned to capture.
“With our excellent track record and leading edge capabilities, Swiber will continue to aim for greater mind-‐share with major oil and gas players, while maintaining a tight control on our operational costs.”
Mr. Wong concluded,“Swiber started with a strong footing in 2012, securing various contract wins for offshore construction projects and vessel chartering services amounting to US$216 million with an additional US$38 million vessel chartering contract for its Middle East JV. This reaffirms the quality, expertise, and professionalism that the company brings to all our undertakings.
We will maintain this robust momentum as we navigate forward and secure more contracts, further strengthening our presence in the Asia Pacific and Middle East region.
We will also continue to expand our spread of offshore marine vessels and services to complement our offshore EPIC business.”
Swiber’s order book of over US$1.0 billion is expected to contribute to the Group’s result over the next two years.
Subsea World News Staff , February 27, 2012; Image: Swiber