Investor Relations

Email This Print ThisChairman's Statement

Extract from EMAS Offshore Limited Annual Report 2015

Dear Shareholders,

EMAS Offshore has gone through a challenging year, amidst the oil and gas sectors experiencing much uncertainty and volatility in oil prices. I would like to thank you for your support, even as we continue to take steps to cut costs and enhance operational effectiveness.

Our new Chief Executive Officer, Capt. Adarash Kumar A/L Chranji Lal Amarnath ("Capt. Kumar") is a veteran in the offshore oil and gas industry. He will be able to bring strategic insights to drive EMAS Offshore's performance, maintain our leading position in Asia, and penetrate West Africa, which we have identified as a key market for us to grow in.

I would also like to extend my appreciation to Mr. Jon Dunstan, who has been with us since 2011. Jon has been instrumental in overseeing the transformation of EOC Limited into EMAS Offshore Limited, creating one of Asia's largest offshore support service providers, and culminated in a duallisting in the Singapore and Oslo stock exchanges in October 2014.

Despite facing headwinds in the sector, EMAS Offshore did fairly well in for the full year ended 31 August 2015 ("FY2015"). We saw an increase in net profit to US$199.5 million for FY2015, boosted by a US$154.7 million negative goodwill arising from the completion of the business combination of EOC Limited and EMAS Marine on 3 October 2014.

Offshore Support and Accommodation Services Division

In the Offshore Support and Accommodation Services division, offshore support vessel achieved an utilisation rate of 75% for FY2015. The Company continues to see strong demand for larger specifications vessels in the Anchor Handling Tug Supply ("AHTS") segment, with a utilisation rate of over 90% for FY2015.

We are also encouraged by the contract momentum in West Africa and Asia. With over US$85 million of new contracts awarded in FY2015, we continue to extend our track record and establish our position as the offshore services provider of choice in Asia and beyond.

Offshore Production Services Division

Our Offshore Production Services division continue to perform well for FY2015 with an operational uptime of more than 95%. Furthermore, our Floating Production Storage Offloading ("FPSO") vessels, Lewek EMAS and Perisai Kamelia continue to perform extremely well with zero recordable Loss Time Incident (LTI) during operations. We have secured several engineering service and construction supervision contracts including services in relation to the Petrobras Libra oil field exploration project in the Santos Basin, Brazil and STX Gaza replacement of vessel in the oil field in North West of Tripoli. Both contracts utilise EMAS Offshore's experience in turret work gained during FPSO conversion projects.

Going into 2016, we will continue to pursue opportunities in maintaining an asset light strategy and focus our capabilities on our offshore support vessels segment. We are also closely monitoring the business environment and have taken further steps to mitigate the slow-down in offshore activities, with an increased focus on vessel utilisation and initiatives to streamline operations and reduce costs.

Mr Lee Kian Soo
EMAS Offshore Limited

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