Jaya Reports 2013 Earnings

Offshore energy services provider, Jaya Holdings Limited has reported consolidated revenue of $29.6 million and net profit of $7.6 million for the financial quarter ended September 30, 2013.

The group’s revenue for the quarter under review was $29.6 million. Excluding the vessel sale, the quarter’s revenue was 12% higher than the previous corresponding quarter. This was due to improved charter utilisation of 91% compared to 84% in the previous corresponding quarter, on the same fleet size of 28 vessels.

The group’s net profit for 1Q FY2013 was $7.6 million. Excluding nonrecurring items and gain from a vessel sale, this quarter’s net profit was 15% higher than that of the previous corresponding quarter.

In July and September respectively, the group completed two high specification, 5500 DWT PSVs Jaya Valour and Jaya Vigilant on time and within budget. The vessels went on-hire on long term charters immediately upon delivery. Jaya Vigilant was customised with a 50 ton subsea crane with active heave compensation for service in water depths of up to 3,000 meters. Both sister ships have been upgraded with highly versatile under deck cargo capacity, enhanced passenger facilities and excellent station keeping in mind.

Commenting on the results, CEO Venkatraman Sheshashayee said, “Our shift in focus to long-term charters of our fleet, delivering high quality, customised services to our clients has paid off and we are pleased to report a sustained strong charter utilization of 91% for the first quarter FY2013. Jaya has also successfully expanded its footprint to new markets in Mexico and East Africa, Mozambique.”

Across all of South East Asia, the Middle East and West Africa jack up and floater demand is stronger than a year ago, which has supported demand for Offshore Supply Vessels (OSVs). The re-development of existing fields already on line to raise recovery and production levels is gathering pace, especially in SE Asia and in Mexico. Older, shallow water fields are being stimulated to produce more oil and gas in Brunei, Malaysia and other markets. This trend towards the re-development of fields is likely to continue. Further, the continuing deepwater discoveries in West and East Africa will buttress demand for OSVs in those markets for years to come.

CEO Venkatraman Sheshashayee said, “We are approaching the monsoon season in SE Asia, during which time offshore activity typically decreases. We expect to maintain our charter utilisation at a healthy level for 2Q FY2014. Against the backdrop of strengthening demand for specialised OSVs and services due to deepwater drilling and the need to stimulate production from older shallow water fields, Jaya has seen both utilisation and day rates improve. Our strong chartering order book of $255 million will provide a strong recurring and sustaining stream of revenue for the Group. This is an increase of 30% compared to a year ago.”