Jaya Holdings reports net profit of US$4.0 million for the third quarter ended 31 March 2013
Jaya Holdings Limited reported consolidated revenue of US$24.8 million and net profit of US$4.0 million for the financial quarter ended 31 March 2013, said in the company's press release. The Group’s total revenue for the quarter under review was US$24.8 million, 53% higher than the previous corresponding quarter.
The Group’s increased revenue was mainly contributed by the Offshore Support Services Division (“OSS”) which revenue was at US$24.4 million, 50% higher than the previous corresponding quarter. The period between December 2012 and February 2013 was a challenging one for offshore oilfield services providers. Jaya’s utilization, like that of many peers, came down due to various reasons, including seasonal factors, the delayed awards of contracts and changes in cabotage rules in Indonesia.
The OSS Division’s increased revenue was attributable to higher day rates achieved as the business expands its geographical presence beyond Asia to West Africa, India and the Middle East. Increased time charter contracts also contributed to the increased revenue for the quarter under review. While charter utilizati on was relatively low (averaging 64% through the quarter) at the beginning of the quarter due to the reasons outlined above, utilization recovered to a healthy level as the quarter progressed. The OES Division’s revenue was derived from some modification works.
The Group’s Net Profit for the quarter under review was US$4.0 million, as compared to US$3.8 million in the previous corresponding quarter. During the quarter under review, the OSS Division recorded a net profit of US$4.6 million compared to US$3.6 million in the previous corresponding quarter. The increase in net profit was mainly attributable to higher average daily charter revenue of US$13,987/day vs. US$9,862/day in the previous corresponding quarter.
The OES Division recorded a net loss of US$0.3 million in the quarter under review as there was no vessel sale during the quarter under review. 2 For the 9 months under review, the Group recorded a net profit of US$20.7 million against US$9.5 million in the previous corresponding period. As at 31 March 2013, the equity attributable to equity holders was US$515.1 million compared to US$498.2 million as at 30 June 2012. Gross debt was $120.0 million, compared against cash and cash equivalent s of $133.4 million, putting the Group in a net cash position. While utilization levels have recovered well, and there are clear signs that demand for offshore support vessels is expected to fu rther pick up as the year progresses, cabotage rules that have been implemented in Indonesia and which have tightened in Malaysia in the past few months are causing increased challenges for the Group to operate our fleet in these markets. However, our strong chartering order book of US$196 million (approximately 20 months of charter revenue), compared to $180 million a year ago, will provide a strong recurring income base for the Group.
Commenting on the results, CEO Mr Venkatraman Sheshashayee said: “Jaya is progressing well along the new strategic roadmap that the Group adopted a year ago. Our increased investment in our people and processes, our focus on strengthening our internal efficiencies and our planned expansions into new markets are all bearing fruit. We are moving up the value ladder in shipbuilding, with plans to build three state-of- the-art diesel-electric DP2 multi-purpose vessels. We are prepared for the various challenges that lie ahead of us in the very competitive and dynamic offshore market, and are confident that by continuing to focus on our service delivery and fulfilling our customers’ needs, we will go from strength to strength.”
Jaya Holdings (JAYA:SP) is a leading Offshore Energy Services Group, headquartered in Singapore. The Jaya Group provides a wide range of services and solutions to the offshore oil and gas E&P domain.