Swiber Revenues Increase by 30 Pct (Singapore)

Swiber Holdings Limited, a world class integrated construction and support services provider to the offshore oil and gas industry, today reported that net profit in the half year ended June 30, 2013 (“HY2013”) rose 11.8% to US$37.4 million from US$33.5 million in the half year ended June 30, 2012 (“HY2012”). Revenue also jumped 30.1% to US$551.8 million in HY2013 from US$424.0 million in HY2012.

Commented Francis Wong, Group Chief Executive Officer and President of Swiber, “The first half of this year has seen Swiber making strides in several ways. Notably, Swiber won several quality projects amounting to US$570 million to-date. Our recently issued S$150 million 6.5% fixed rate certificates under a newly established sukuk programme was met with warm investor response; a strong endorsement of our good financial standing. This will provide us with headroom for further expansion and growth. These achievements demonstrate Swiber’s strong fundamentals and innovative streak, which will continue to be Swiber’s competitive edge at project tenders at regional and international arenas.”

Other Performance Review

In line with the higher revenue of US$551.8 million, gross profit climbed 22.4% to US$87.0 million in HY2013. Gross profit margin held steady at 15.8% in HY2013. Share of profit of associates rose 57.3% from US$6.6 million in HY2012 to US$10.4 million in HY2013. Other operating income also surged by 63.1% to US$14.9 million in HY2013. With the rise in business activities, administrative expenses, other operating expenses and finance expenses also increased. Notwithstanding the above, net profit rose 11.8% to US$37.4 million in HY2013.

Swiber’s basic earnings per share, based on its HY2013 results maintained at 4.0 US cents, while net asset value per share rose to 84.4 US cents as at June 30, 2013, from 79.3 US cents as at 31 December 2012.

Growth Strategies & Outlook

Commented Francis Wong, “Analysts have forecast international exploration and production spending levels expected to reach a record US$678 billion by end 2013. This augurs well for Swiber’s wide range of offshore EPIC and marine support services across the Asia Pacific, Middle East, and Latin America regions.

“Hence, there is a strong basis to remain optimistic about the prospects for the offshore oil and gas industry. The Group has built up its resources and a sizeable fleet in recent years. Now, our focus is to bid selectively and sharply to win large new contracts from major oil and gas players in the markets where we have a presence in, and also penetrate into new markets.”

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Press Release, August 14, 2013