Kreuz's Expanded Fleet Gives 430% Boost to 4Q Profit
Singapore-listed Kreuz Holdings posted Friday a fourth quarter profit ended Dec. 31, 2012, of $5.7 million, up 430 percent from the same period last year. In 4Q 2011, Kreuz reported a net profit of $1.07 million.
For the full year ended Dec. 31, 2012, Kreuz booked a profit of $39.6 million, up 49 percent from one year ago.
Kreuz said in its earnings report that the acquisition of a dynamic positioning construction class diving support vessel in April last year contributed to an increase in gross profit margin, as it reduced the company's reliance on third party vessels.
"The subsea sector is maintaining its current trend of continued growth in the shallow, medium and ultra-deep waters as subsea technology becomes an economically viable solution for increasingly remote or ultra-deepwater fields," the company noted in its disclosure.
"The high demand expected in the subsea sector along with the need to reinvigorate aging offshore fields augur well for Kreuz's subsea construction and installation services, and inspection, repair and maintenance," the company added.
In the Southeast Asian region, oil-rich countries such as Malaysia and Indonesia are placing a renewed emphasis on reinvigorating their aging offshore oil fields. Both of these countries are also looking at promoting exploration deeper offshore and on their smaller oil fields.
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