Financials
First Quarter Financial Statement And Dividend Announcement For The Three Months Ended 31 March 2012
Financials Archive
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Income statement
Statement of comprehensive income for three months ended 31 March 2012
Statement of financial position
Review Of Performance
INCOME STATEMENT REVIEW
The Group's revenue for the three months ended 31 March 2012 ("1Q12") increased by US$9.1 million (42.3%) to US$30.6 million as compared to the corresponding three months of 2011 ("1Q11"). The increase in revenue was due mainly to:-
i) the chartering contribution from the deployment of an additional unit of the Group's multi-purpose selfpropelled jack-up rig ("Liftboat") for a 3 years charter in the Java Sea; and
ii) the deployment of third party vessel in support of the Gorgon gas field in Australia.
The higher cost of sales and servicing was due mainly to the higher operating cost from the liftboat operation in the Java Sea and higher vessels maintenance cost as compared to the corresponding period 1Q11. The charter cost of third party vessel also contributed to the higher cost of sales and servicing.
As a result of the above, the Group's gross profit improved by US$1.4 million (11.9%) to US$13.6 million (1Q11: US$12.1 million).
The lower other income in 1Q12 was due mainly to the absence of gain from disposal of Liftboat.
The increase in finance income was mainly due to increase in interest income from bank deposits and loan to joint ventures.
The increase in share of results of joint venture companies in 1Q12 was mainly due to the contribution from the Group's joint venture jack-up rig deployed in the North Sea.
Charter income derived from Singapore flagged vessels are exempted from tax under Section 13A of the Income Tax Act of Singapore. Current year income tax expense of US$938,000 relates to the corporate tax expense and withholding tax expense incurred by vessels operating in certain overseas waters.
STATEMENT OF FINANCIAL POSITION REVIEW
Non-current Assets
The Group's non-current assets amounted to US$406.7 million as at 31 March 2012. The increase in noncurrent assets was mainly due to the increase in progress payments for the Group's multi-purpose self-propelled jack-up rigs that are under construction. The increase in joint ventures was attributable to the positive share of joint ventures results and additional loan to joint ventures. The increase in other non-current assets was due to the reclassification of three of the Group's vessels which are on long term charters with purchase options granted.
Current Assets
The Group's current assets amounted to US$233.4 million as at 31 March 2012. The increase was due to the increase in cash and bank balances as a result of the issuance of new ordinary shares in March 2012. Included in the other current assets were the advance payments and deposits made for the construction of vessels.
Total Liabilities
The Group's total liabilities amounted to US$280.6 million as at 31 March 2012. The increase in non-current financial liabilities was mainly due to the additional drawdown of bank borrowings to finance the progress construction of the Group's multi-purpose self-propelled jack-up rigs. The increase in current liabilities was mainly due to deposit received from the disposal of a subsidiary that owns a unit of the Group's multi-purpose self-propelled jack-up rig . Included in other payables were the advance payments and performance deposits.
Total Equity
The increase in total equity was attributable mainly to the profit derived in 1Q12 and issuance of new ordinary shares.
STATEMENT OF CASH FLOWS REVIEW
Cash Flow from Operating Activities
The Group's net cash inflow from operating activities was US$10.2 million. This was mainly due to the net cash generated by the operations of the Group.
Cash Flow from Investing Activities
The Group's net cash outflow from investing activities was US$63.4 million. This was mainly due to the progress payments made for the Group's multi-purpose self-propelled jack-up rigs and the deployment of funds towards the Group's joint ventures that own the jack-up rigs (collectively called "Service Rigs"). The increase in the net cash outflow from investing activities was partially offset by the deposit received by the Group for the disposal of a subsidiary that owns a unit of the Group's multi-purpose self-propelled jack-up rig.
Cash Flow from Financing Activities
The Group's net cash inflow from financing activities was US$122.9 million which was resulted from the increase in bank borrowings to finance the progress payment of the Group's multi-purpose self-propelled jackup rigs as well as the issuance of new ordinary shares.
Commentary
The Group expects more assets to be deployed in FY2012, these include Liftboats and Jack-up rigs. The Group is also expected to enjoy higher revenue from Australia with the commencement of the QCLNG project in the second quarter of the year. Leveraging on its track record and experience and existing business infrastructure, the Group will continue to pursue business opportunities to support LNG related projects in Australia and its vicinities. The Group will also continue to focus on the investment in Service Rigs to meet the strong demand from its customers in the oil and gas industry.