PT Apexindo Pratama Duta Tbk has submitted its Unaudited Financial Statement for the period ended 31 March 2008 and 2007 to Capital Market Supervisory Agency (BAPEPAM) and Indonesian Stock Exchange (IDX) on 30 April 2008. Based on the result, profitability has risen significantly shown by improved EBITDA margin to 56.7% from 42.7% last year on the back of notably higher EBITDA of USD 31.8 million or up substantially by 106.5% from USD 15.4 million in 1Q07. Higher EBITDA was led by significantly increased Operating profit of 111.1% to USD 20.9 million compared to last year's USD 9.9 million. Agustinus B. Lomboan, Apexindo's Finance Director explains, "Excellent profit margins have put Apexindo to be among drilling companies worldwide that possess exceptional profitability. This condition demonstrated our discipline in applying our strategies among others to promote continuous efficiency and capitalize on strong demand in drilling equipment."
Ultimately, the surge on profitability was boosted by substantially higher Revenue at USD 56.1 million or up by 55.4% from USD 36.1 million that was driven by the contribution from the offshore segment. Revenue contribution from the offshore segment went up convincingly by 101.0% this year, posted at USD 40.4 million compared to last year's USD 20.1 million. This was due to higher rates obtained by several offshore rigs -- namely Maera, Raniworo and Soehanah -- on their respective new contracts, compared to 1Q07.
While, offshore utilization in 1Q08 went up slightly by 2% from 87% booked last year. The offshore utilization rate in 1Q08 was affected from several conditions such as Raniworo that just commenced its newest Santos project at the end of January this year as well as Raissa that underwent drydocking from mid of February to mid of March. Maera also commenced its drydocking program on mid of March and has finished the program by mid of April. Agustinus adds, "New contracts for offshore rigs that we have obtained previously have started to show significant contribution to our revenue as the projects commenced. Improved dayrates acquired are expected to substantially boost our growth this year."
Further, revenue contribution from the onshore segment was relatively stable by leveling slightly to USD 15.7 million, down by 1.9% from USD 16.0 million last year. This was mainly caused by lower utilization rate booked in 1Q08 at 57% compared to 63% last year in which Rig 15 was on idle status while Rig 2 and Rig 14 were on preparation stage to start their respective new projects.
Furthermore, balance sheet remained healthy as debt to equity ratio was kept below 1.0x at 0.8x on the back of excellent equity level resulted from strong earning generation. Cash and cash equivalents* also grew significantly by 130.6% to USD 50.5 million from USD 21.9 million last year maintaining liquidity at favorable level.
Agustinus further explains, "Healthy balance sheet will ensure our flexibility in formulating strategy for growth in the future. The strong cash also helped us to have sufficient liquidity. We are confident that with solid teamwork and appropriate implementation of the company's strategies will yield excellent growth coupled with strong profitability. Hence, better return for the Shareholders."
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