Swiber Soars: Q1 Revenues Increase 266%
Swiber Holdings Limited showed its strongest ever quarter with a top-line that was almost half FY2007's. For the 3 months ended March 31, 2008 (1QFY2008), the Group posted revenue of US $70.9 million, a year-on-year increase of 266.9% over US $19.3 million in 1QFY2007. Net profit soared more than 180% to US $10.4 million from US $3.6 million previously. Swiber's strong first quarter was largely due to increased number of EPCIC projects completed during the period and contributions from its shipyard business. In 1QFY2008, the Group recorded gross profit and margins of US$18.3 million and 25.9% respectively.
Said Swiber's Executive Chairman and Chief Executive, Raymond Goh, "During the quarter, Swiber completed three pipeline projects and two installation projects in Malaysia and Indonesia which propelled us to a good, strong start in 2008."
"Currently, Swiber operates a fleet of 28 owned vessels, compared to a mere 10 vessels a year ago. This fleet expansion strategy has significantly reduced our third party charter-in costs and kept our profitability levels healthy. We firmly believe that this strategy will pay off in the longer term as it will give us the necessary scale and vessel capacity to bid for, and handle, more offshore oil and gas projects as well as expand geographically," said Goh.
Based on the latest results, earnings per share increased to 2.43 US cents (based on 424,350,000 weighted average ordinary shares in issue), from 0.99 US cents in the year-ago period (based on 369,000,000 weighted average ordinary shares in issue). Net asset value per share rose to 44.85 US cents as at 31 March 2008, from 13.13 US cents as at 31 December 2007. As at 31 March 2008, Swiber's balance sheet remained healthy with total equity of US$191.0 million and debt to equity ratio of 1.02 times. This compared to total equity of US$177.5 million and debt to equity ratio of 0.53 times as at 31 December 2007.
Sailing ahead on order books of US$476 million Riding on the crest of continued strong oil prices and sustained demand, Swiber is sailing smoothly ahead. As at 31 March 2008, the Group is sitting on a hefty order book of US$476 million (this excludes the conditional LOI for the installation of platforms and pipelines in the Gulf of Thailand for a period of five years which has an estimated value of approximately US$50 million per year), from US$176 million in March 2007 and US$350 million as at end February 2008.
"Our projects in the region are growing at a healthy rate. In this first quarter, the total value of new projects won in Malaysia, Indonesia, India and Thailand amounted to approximately US$248 million, excluding the US$50 million per year conditional LOI in the Gulf of Thailand for a period of 5 years," said Goh.
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