Kreuz Holdings Limited, a subsea service provider for the oil and gas industry, today reported that the Group’s revenue increased 12.7% to US$61.3 million for the three months ended June 30, 2012 (“2Q2012”) as compared to US$54.4 million in the previous corresponding period (“2Q2011”). Net profit was US$13.3 million for 2Q2012 compared to a net profit of US$14.0 million in 2Q2011.
On a half-yearly basis, the net profit increased 20.0% to US$23.6 million for the six months ended June 30, 2012 (“HY2012”), as compared to US$19.7 million in the previous corresponding period (“HY2011”). This was achieved on a 36.5% increase in revenue to US$109.9 million in HY2012 as compared to US$80.5 million in HY2011.
The increases in revenue for 2Q2012 and HY2012 were driven mainly by higher sales from both third party customers and related parties.
Mr Kurush Contractor, Executive Director and CEO of Kreuz Holdings, said: “Our performance is an indication of our ability to execute projects within schedule and budget while delivering quality and customised subsea solutions to our clients. We will continue to exercise cost control and improve our operational efficiency as we grow our business. Notwithstanding the competitive environment, demand for subsea solutions remains positive. Our current order book, which stands approximately at US$248 million, shall provide us with a strong foundation towards future growth.”
Correspondingly, in comparison to HY2011, gross profit increased 18.2% to US$33.9 million while profit before tax was up by 19.5% to US$28.3 million in HY2012. Gross profit margins for 2Q2012 and HY2012 were 30.4% and 30.9% respectively, down from 35.4% and 35.6% for the respective corresponding previous periods, which was due mainly to the higher third party vessel chartering expense incurred during 2Q2012 and HY2012.
The Group continues to maintain a strong balance sheet with a low gearing ratio of approximately 26%. Net asset value per share increased from 21.92 US cents as at December 31, 2011 to 26.56 US cents as at June 30, 2012. Earnings per share increased from 3.88 US cents in HY2011 to 4.44 US cents in HY2012.
Press Release, August 15, 2012