EOC Limited, a provider of offshore construction and production vessels and services and a unit of Singapore-listed Ezra Holdings Limited, posted a 42 percent decline in revenue to $12.33 million for the fourth quarter of financial year (FY) 2013 ending Aug. 31, compared to $21.39 million in the previous year.
The steep fall in revenue was due mainly to an absence of a one-off project revenue contribution in FY 4Q 2013, unlike in FY 4Q 2012 when a construction project undertaken in Papua New Guinea contributed $10.7 million.
EOC said the plunge in revenue was offset by $2.9 million contribution from project management, engineering and procurement services. This was for the modification of Lewek Emas floating production storage and offloading (FPSO) vessel to accommodate a tie back linking the vessel to the nearby Premier operated Dua oil field, offshore Vietnam as well as the conversion of a floating storage offloading tanker unit.
Despite the lower revenue, gross profit rose 14 percent to $6.77 million in FY 4Q 2013 from last year's $5.92 million, with the improvement attributed mainly to contribution from the two project management, engineering and procurement services deals.
EOC's construction vessels are fully contracted. Both accommodation work barges - Lewek Chancellor and Lewek Conqueror - and its DP2 heavy-lift derrick pipe lay barge, the Lewek Champion, are currently on charters to international oil majors as the end-client, for the execution of various offshore projects in the offshore Brunei, Republic of Congo and Gulf of Thailand.
As for the Production Division, EOC’s second FPSO project, the Lewek EMAS, recently completed its second year of operation under a six-year firm charter with Premier Oil (Vietnam) Offshore at the Chim Sao Field off Vietnam. EOC also entered into a share sale-and-purchase agreement with Perisai Petroleum Technologi Bhd and has completed the sale of a 51 percent equity interest in entities owning and operating Perisai Kamelia - formerly FPSO Lewek Arunothai. As part of the deal, EOC will acquire a 49 percent interest in SJR Marine (L) Ltd, which owns the offshore construction and pipe laying barge, the Enterprise 3.
"Moving forward, we plan to leverage on our expertise by continuing to offer project management, engineering, construction, installation and operation and maintenance (O&M) in the floating production sectors but with reduced focus on ownership. Our strategy is to pursue projects that suit our proposed services model and include a level of complexity that we are comfortable with, whilst demonstrating added value to our clients and shareholders by leveraging the wider EMAS group capabilities," EOC said in a press release.
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