Swiber Holdings Limited, a world class integrated construction and support services provider to the offshore oil and gas industry, reported a 66.0 % surge in net profit to US$20.9 million for the three months ended June 30, 2012 (“2Q2012”). This was achieved on the back of a 27.1% increase in revenue to US$229.6 million over the same period.
The good topline performance was driven by progressive revenue recognition from offshore construction contracts awarded to the Group, concentrated in the South Asia and Southeast Asia region.
Mr. Francis Wong, Group Chief Executive Officer and President of Swiber commented, “ We are heartened to see that our order book remains robust at approximately US$1.6 billion, including approximately US$1.0 billion from new contract wins this year. These were secured from oil majors for projects to be performed in Mexico, the Middle East, Southeast Asia and South Asia, which will give us strong order book that provide visibility beyond 2013.
“With our enlarged and young fleet of 56 vessels, increased balance sheet flexibility after our primary placement and the issue of medium term bonds, we are well positioned to continue to bid for major contracts.
“At the same time, we will continue to pursue cost synergy between different regions to take advantage of the different work seasons, vessel utilisation and business operations, for greater cost efficiencies. ”
Gross profit correspondingly increased by 22.6% to US$32.7 million in 2Q2012 from US$26.6 million in 2Q2011, notwithstanding higher cost of sales. Gross profit margin held steady at 14.2% in 2Q2012.
For 2Q2012, Swiber saw a 54.0% increase in other operating income to US$11.5 million arising from gain on disposal of associate and fair value gains from convertible bonds. The Group also recorded a share of profit of US$4.1 million from associates and joint ventures as compared to a share of loss of US$455,000 in the same corresponding period.
The absence of foreign exchange loss in 2Q2012 as compared to a loss of US$1.5 million in 2Q2011 resulted in a reduction in the Group’s other operating expenses. At the same time, in line with business expansion and higher bank borrowings, the Group incurred higher administrative expenses of US$13.5 million and finance costs of US$7.3 million respectively in 2Q2012, which had some impact on bottomline.
Overall, net profit for 2Q2012 increased by 66.0% to US$20.9 million.
[mappress] Press Release, August 15, 2012