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EOC's Revenue Plummets 83% on Dismal FPSO Utilization Rate

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Singapore-based offshore services provider EOC, an associated company of Ezra Holdings, on Friday revealed that its revenue for the financial first quarter ended Nov. 30, 2012, is $10.5 million, an 83 percent plunge from a year ago. 

Profit for the period is $747,000, down 91 percent from a year ago.

EOC said in an earnings report that its poor revenue performance is due to a lack of revenue from the Lewek Arunothai floating, production, storage and offloading (FPSO) vessel during the recent quarter. It added that an absence of one-off project revenue also contributed to its revenue decline; the company benefited from a construction project in Papua New Guinea in the first quarter of the previous financial year which contributed $24.8 million in revenue.

Despite its lower first quarter results, EOC remains optimistic about its prospects for the rest of its financial year.

"Throughout the calendar year 2012, oil prices remained consistently above average budget planning prices indicated by the oil companies, which in turn sustained the strong momentum in exploration and production investments. Oil prices are likely to remain above this level in the mid-to-long term, with some short-term dips resulting from uncertainties over the global economy," EOC noted in its earnings statement.

EOC's accommodation work barges, the Lewek Chancellor and Lewek Conqueror, remain secure on long-term charter contracts, while its flagship Lewek Champion DP2 heavy-lift derrick pipelay barge is on a long-term contract until 2015.

The company has meanwhile concluded negotiations for the redeployment of the Lewek Arunothai FPSO for a project off Malaysia. The vessel is currently undergoing upgrading at Keppel Shipyard and is expected to be deployed in the North Malay basin from mid-2013.
 

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