EMAS, a leading global offshore contractor and provider of integrated offshore solutions to the oil and gas (O&G) industry and operating brand for Ezra Holdings Limited, is on track to turn its subsea services business around in the current financial year ending 31 August 2012 (FY12).
In addition, EMAS not only expects its subsea construction fleet to be well utilised but also, its earnings from EMAS AMC to increase in the second half of FY12, in line with its previous projections, as it continues to execute on its subsea order book in excess of US$1 billion.
Mr Lionel Lee, EMAS’s Managing Director said, “ EMAS has transformed itself into a leading player in the engineering and project management space with its own assets to execute subsea projects globally. The investment in Aker Marine Contractors, back in March 2011, is now paying off. We will continue to focus on leveraging our integrated services to deliver long term value to our shareholders.”
In its latest interim results for the six months ended 29 February 2012 (1HFY12), Group revenue rose 124%, or US$217.5 million, to US$392.3 million, as compared to 1HFY11 largely due to the subsea services division. The steady execution and delivery of projects also saw revenue from the subsea services division improve by 41% in 2QFY12 from the preceding quarter, and enabled the division to contribute positively to gross profits.
This and the full 6-month operation of the marine division’s five PSVs (Platform Supply Vessels) and three AHTS (Anchor Handling Tug and Supply) vessels helped to lift EMAS’s gross profit by 28% to US$69.0 million in 1HFY12. The Group’s interest cover also strengthened to 4.5 times in 1HFY12 from 3.9 times in the previous half year.
Group net attributable profit (PATMI) jumped 66% to US$35.4 million due to increases in gross profit, other operating income and share of profit from joint venture companies despite higher financial and administrative expenses.
Commenting on the higher expenses, Mr Lee explained, “We are building a solid and international infrastructure of skills and an administrative backbone to support our geographical expansion which will result in greater economies of scale as we expand further.”
“EMAS’s continued investment in people, resources and capabilities around the world has placed us in a strong position to ride the next wave of E&P (exploration and production) spending, especially in the deepwater segment. We look to reap the rewards of our globalisation strategy in the years to come,” he added.
Last month, the Group successfully placed out 110 million new shares at S$1.10 each, reflecting investor confidence in EMAS’s business and growth prospects. The gross proceeds of S$121 million from this issue will immediately bolster the Group’s balance sheet as it continues to execute on its growing order backlog as well as seize many more opportunities in the offshore oil & gas sector.
[mappress] Subsea World News Staff , April 13, 2012; Image: EMAS