Jaya Reports $4 Million Net Profit for 1Q 2013
Jaya Holdings Ltd. reported consolidated revenue of $24.8 million and net profit of $4.0 million for the financial quarter ending March 31, 2013.
The group’s total revenue for the quarter under review was $24.8 million, 53% higher than the previous corresponding quarter. The group’s increased revenue was mainly contributed by the Offshore Support Services (OSS) Division which revenue was at $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 utilization 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 $4 million, as compared to $3.8 million in the previous corresponding quarter.
During the quarter under review, the OSS Division recorded a net profit of $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 $13,987/day vs. $9,862/day in the previous corresponding quarter.
The OES Division recorded a net loss of $0.3 million in the quarter under review as there was no vessel sale during the quarter under review.
For the nine months under review, the group recorded a net profit of $20.7 million against $9.5 million in the previous corresponding period.
As at March 31, 2013, the equity attributable to equity holders was $515.1 million compared to $498.2 million as at June 30, 2012. Gross debt was $120.0 million, compared against cash and cash equivalents 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 further 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 $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.