EOC Sees Rebound in Heavy-Lift Crane Barge Utilization

EOC Limited, a provider of offshore oil-and-gas construction and support services in Asia, announced a net profit of US$13.5 million for the nine months ending May 31, compared with a net profit of US$16.1 million for the previous nine-month period. Revenue for the nine-month period rose 51 percent, year-on-year, to US$81.5 million, while net cash flow increased to US$47.2 million. The company said it expects vessel utilization rates to pick up from the near term with new charters for two of its three construction vessels.

Based in Singapore, EOCL provides two heavy-lift accommodation crane barges, the Lewek Conqueror and the Lewek Chancellor; one dynamically positioned heavy-lift accommodation pipelay vessel, the Lewek Champion; and a floating production, storage and offloading (FPSO) unit, the Lewek Arunothai. These vessels are utilized in various support activities that last through facility development, production, operations, maintenance and abandonment.

The company said in a statement that it expects a gradual rebound in the offshore oil and gas industry. It has already seen a pick-up in the opportunities for offshore projects in the current quarter, with the award of contracts to Lewek Chancellor and Lewek Champion worth up to US$20 million. In one contract, Lewek Champion will be providing structural lift, pipelay and subsea construction services. EOCL’s other heavy lift accommodation crane barge, Lewek Conqueror, is already contracted until 2014 under a five-year charter worth up to US$68 million with extension options exercised, the company announced.

Lim Kwee Keong, EOC's chief executive officer, said in a statement, "With the latest contracts and the resumed operation of our FPSO, Lewek Arunothai, we are looking to better our performance in the fourth quarter." Keong added, “We are busy exploring opportunities to extend our geographic reach and expand through the provision of offshore support services to the alternative energy market.”