Swiber Records 9M 2014 Net Profit of $40.1M, Down 22.8% YOY

Singapore's offshore construction and support services firm Swiber Holdings Limited posted a net profit of $40.1 million for the nine months to Sept. 30 (9M 2014), down 22.8 percent from $51.9 million in the corresponding period last year (9M 2013), according to the company's financial results released Thursday.

The firm's revenue shrank 36.3 percent to $526.2 million from $826.0 million, due largely to lower revenue recognition from ongoing projects that were substantially completed in in financial year 2013 (FY 2013), while work on its new EPIC (engineering, procurement, installation and construction) projects have not commenced in the three months ended Sept. 30 (3Q 2014).

Swiber recorded a net loss of $22.9 million for 3Q 2014, down from a net profit of $14.5 million a year ago, with the decline attributable primarily to a 60.9 percent decrease in revenue to $107.3 million which caused gross profit to fall to $847,000 from $39.0 million in 3Q 2013.

“The new projects that Swiber clinched earlier this year are scheduled to start from the final quarter of the year. At the same time, we have been actively bidding for new orders in our target markets, particularly in Southeast Asia which is our primary revenue driver, as well as in South Asia, Latin America and West Africa," Francis Wong, Group CEO and president said in a press release.

Swiber is stepping its presence in Mexico, with the company flying the Mexican flag on five of our vessels. The move is expected to help establish Swiber as a local key player in support of its clients and potential customers operating in Mexico.

The company expects to grow its order book -- which stood at approximately $535 million as at Nov. 12 -- as it is actively bidding for new projects in target market. 

“While global oil prices have experienced a decline recently, we believe shallow water field development work will continue to take place and generate demand for EPIC services. Swiber’s business model focuses mainly on the execution of EPIC projects for shallow water exploration and production (E&P) activities ... we will continue to seize opportunities in growth markets across the Asia Pacific, Latin America and West Africa,” Wong added.


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