Swiber's 1Q 2015 Revenue Falls to $164.9M, Down 17.3% YOY

Swiber Holdings Ltd., a Singapore-based provider of engineering, procurement, installation and construction (EPIC) services for the offshore industry, recorded a 17.3 percent decline in revenue for the first quarter of 2015 (1Q 2015) to $164.9 million, down from $199.5 million a year ago, while net profit fell sharply from $52.8 million to $70,000 in the same period, the company said Thursday.

"The declines were due mainly the depletion of the Group’s order book last year, and the absence of a $95.1 million gain from the disposal of a group of subsidiaries which bolstered the previous comparable numbers," Swiber said in the media release.

Latin America was the largest revenue generator in 1Q 2015, contributing 69 percent or $113.8 million, while the balance came from East Asia, South Asia, Southeast Asia and other markets.

Meanwhile, Swiber's gross profit margin improved to 11.8 percent in 1Q 2015 from 4.5 percent year-on-year after more stringent controls were imposed over operating costs.

“We had a difficult first quarter which was expected given the smaller pipeline of contracts last year. With our pipeline now standing at a record $1.8 billion, we believe we are well positioned for a strong turnaround especially in the second half ... We are working hard at maintaining the momentum of new awards and are cautiously optimistic that we will continue to gain traction in the coming months," Deputy Group CEO Darren Yeo said.

He stressed that Swiber’s EPIC business focus mainly on the field development rather than the exploration cycle in the oil and gas industry, a segment that is more vulnerable to changes in oil prices. Moreover, its projects are in shallow water, which have lower breakeven costs.

“In view of these factors, the Group believes its business would be less affected by the industry’s expenditure cuts and that it is in a better position to capitalize on future bidding opportunities,” Swiber said.

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