EOC, the Asian supplier of offshore production services, announced Thursday that it had delivered a set of "strong results" for the first quarter ended November 2012, with robust contributions from both its construction and production divisions.
The full utilization of EOC's fleet and a strong maiden contribution from the Lewek EMAS – its second floating, production, storage and offloading (FPSO) vessel – drove net the firm's attributable profit for 1Q 2012 to $8.5 million, an improvement over the $0.6 million posted for the previous corresponding quarter.
The Lewek EMAS, in which EOC holds a 41.7 percent stake, added about $1.0 million to the bottom line in the six weeks that the vessel has been operating.
Meanwhile, Oslo-listed firm's revenue rose 159 percent year-on-year to $60.8 million in 1Q 2012, contributed by construction project revenue of $26.7 million, as well as increased contributions of $6.4 million from EOC's heavy-lift accommodation pipelay vessel, the Lewek Champion.
"This set of results reflects our ongoing efforts to strategically grow the group's recurrent income base and improve earnings visibility," said EOC chief executive officer Lim Kwee Keong.
"In the construction division, for instance, we have been concentrating on longer-term leasing contracts instead of the previous lump-sum offshore engineering, procurement and installation projects for which our margins are lower in today's market. Furthermore, we are actively working on opportunities throughout the value chain of the floating production segment, either on our own or jointly with strategic partners."
Two of the group's construction vessels – the Lewek Champion, its heavy-lift pipelay vessel, and the Lewek Conqueror, an accommodation work barge – are currently engaged in relatively long-term charters. In addition, the Lewek Chancellor, its other accommodation work barge, is busy in the West Africa, where she is deployed on a contract which could see her employed for up to an additional sixteen months.
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