Swiber Holdings Limited , a world class integrated construction and support services provider to the offshore oil and gas industry today reported a 98.4% increase in net profit to US$15.9 million for the three months ended September 30, 2011 (“3Q2011”), in tandem with a 12.5% increase in revenue to US$137.7 million over the same period.
The revenue increase was driven by progressive revenue recognition from various contracts that are concentrated in South Asia and Southeast Asia, awarded to the Group in the last two years.
Apart from revenue growth, the increase in net profit was mainly due to higher other operating income in 3Q2011 from foreign exchange gain and changes in fair value of financial derivative embedded in convertible bonds, as well as lower other operating expenses in 3Q2011 when compared to changes in fair value of financial derivative embedded in convertible bonds and higher foreign exchange losses recorded in 3Q2010. This was offset by higher administrative expenses in line with business expansion and losses incurred by certain associates and joint ventures.
Cumulatively, Swiber’s revenue and earnings for the nine months ended September 30, 2011 (“9M2011”) stood at US$468.9 million and US$40.3 million respectively, surpassing revenue of US$465.7 million and net profit of US$39.4 million for FY2010.
Mr. Francis Wong, Group Chief Executive Officer and President of Swiber said, “ Swiber’s delivery of robust earnings in 3Q2011, alongwith our order book surging to a record high of approximately US$1.0 billion notwithstanding the current economic volatility, gives us a solid footing to navigate the current uncertainties well. This entrenches and attests yet again to the Group’s position as an experienced and reputable offshore service provider in the offshore exploration and development market.
“Together with an expanded fleet of vessels, experienced management team and strong track record, we are well positioned to prudently seize fresh opportunities that will arise in the buoyant offshore exploration and development market.”
Growth Strategies and Outlook
Said Mr. Wong, “ Offshore exploration and development activities will continue to increase with prominence, sustained by the constant need to repair and maintain ageing oilfield structure, replace and locate new reserves, driven by the global structural demand for energy. Barring unforeseen circumstances, we are confident that Swiber will benefit from the positive outlook of the offshore industry. At the same time, we remain prudent in managing our business operations and cost efficiencies.”
Swiber’s order book of approximately US$1.0 billion is expected to contribute to the Group’s result over the next two years.
[mappress] Source: Swiber, November 14, 2011