Jaya reports Net Profit of US$6.5 million for the second quarter ended 31 December 2012

Jaya Holdings Limited reported consolidated revenue of US$108.5 million and net profit of US$6.5 million for the financial quarter ended 31 December 2012.
The Group’s revenue for the quarter under review was US$108.5 million vs. US$14.2 million in the previous corresponding quarter. Offshore Support Services Division recorded revenue of US$25.2 million, 79% higher than the previous corresponding quarter and revenue from the Offshore Engineering Services Division of US$83.3 million was significantly higher than the previous corresponding quarter.
• The higher Offshore Support Services Division’s revenue was attributable to higher charter utilisation and higher day rates achieved for the quarter under review, at 80% compared to 62% for the previous corresponding quarter, on a fleet size of 27 vessels compared to 29 vessels a year ago.
• The Offshore Engineering Services Division delivered and sold two vessels during the quarter under review and recorded US$83.3 million revenue against nil sold in the previous corresponding quarter. One of vessels sold during the quarter under review was the 16,000 bhp Ice-Class, Jaya Supreme, the largest and most advanced vessel built by the Group.
For the 1st Half FY2013, Group revenue of US$147.2 million was US$104.5 million higher than the previous corresponding period.
• Revenue from Offshore Support Services Division of US$51.6 million was 71% higher than the previous corresponding period mainly due to improved charter utilization and higher daily charter rates as the Group increased its geographical presence in areas such as West Africa, India, and the Middle East.
• The Offshore Engineering Services Division recorded total revenue of US$95.6 million compared to US$12.6 million in the previous corresponding period as it delivered and sold three vessels compared to one vessel sold in the previous corresponding period.
The Group’s Net Profit for the quarter under review was US$6.5 million, as compared to US$1.0 million in the previous corresponding quarter.
• The Offshore Support Services Division recorded a net profit of US$8.3 million in the quarter under review compared to US$0.8 million in the previous corresponding quarter. The increase in net profit was mainly attributable to improved charter utilization of 80% vs. 62% and higher average daily charter revenue US$12,685/day vs. US$9,228/day a year ago. Disposal gains of US$0.2 million were recorded in quarter under review as it disposed of one vessel against none disposed in the previous corresponding quarter.
• The Offshore Engineering Services Division recorded a net loss of US$1.3 million in the quarter under review, mainly due to an additional impairment loss recorded for a project completed during the quarter.
For the 1st Half FY2013, the Group recorded a net profit of US$16.6 million against US$5.8 million in 1st Half FY2012.
As at 31 December 2012, the equity attributable to equity holders was US$514.1 million compared to US$498.2 million as at 30 June 2012. Gross debt was $150.0 million, compared against cash and cash equivalents of $$176.5 million, putting the Group in a net cash position on 31 December 2012.
Commenting on the results, CEO Mr Venkatraman Sheshashayee said, “We are in a better position today, compared to a year ago. We have made a timely shift in our strategic focus. We have invested in strengthening our capabilities, enhancing our internal efficiencies and increasing our market knowledge in both our businesses. We will continue to optimise our fleet and enhance our service delivery and quality to meet the demands of our customers as we expand our services to new markets in West Africa, the Middle East and Australia.”
Despite the increasing level of activity, the Group expects that the oversupply of OSV situation will remain a challenge into 2013. Cabotage rules that have been enforced in
Indonesia from 1st January 2013, coupled with the monsoon season, are expected to lead to a significantly lower utilization in the 3rd quarter. However, there are signs that demand is expected to pick up as the year progresses.
On 5 December 2012, the Group successfully completed the drawdown of the new loan, repaid the Scheme debts and terminated the Schemes of arrangement. The successful termination of the Schemes allows the Group flexibility to make new investments and paves the way for the resumption of a dividend payout. The Group is pleased to declare an interim dividend of 0.5 Singapore cent per share.
Source: Jaya Holdings