Kreuz Holdings Limited (Kreuz or together with its subsidiaries, the Group), a subsea service provider for the oil and gas industry, announced that it has secured a string of contracts worth approximately US$142 million from the Swiber Group for subsea installation works, and a third-party client for the provision of Remotely Operated Vehicle (ROV) services. These services, which are to be performed largely in Southeast Asia, are scheduled to commence in the third quarter of 2012 with completion expected in the fourth quarter of 2013.
Mr Kurush Contractor, Executive Director and CEO of Kreuz, said: “We are pleased to win this fresh series of contracts worth approximately US$142 million, which are of significantly larger amounts as compared to last year’s contract wins, and will be primarily performed using our newly acquired asset where schedule permits. This achievement demonstrates our rising capability as a comprehensive and integrated subsea services provider to key offshore service providers in the oil and gas industry. We shall endeavour to ride on the buoyant offshore and marine industry, further strengthening the solid track record that we have achieved since listing about two years ago.”
These contract wins follow Kreuz’s strong financial results for the first quarter ended March 31, 2012 (1Q2012), where the Group reported revenue growth of 86% from US$26.1 million for the first quarter ended March 31, 2011 (1Q2011) to US$48.6 million for 1Q2012. Correspondingly, the Group recorded a 80% jump in net profit to US$10.3 million in 1Q2012 as compared to 1Q2011. Industry consultants have estimated over US$335 billion worth of expenditure on offshore operations and maintenance over the next five years1. A significant rise in offshore exploration and subsea field development activity is also expected to drive total annual expenditure for ROV support of underwater operations from US$891 million in 2010 to approximately US$1,692 million in 20152.
Mr Kurush Contractor added, “Kreuz will continue to ride on the momentum of growth with a two-pronged approach – remaining committed in our provision of top quality services and also exploring opportunities to acquire state-of-the-art deep and shallow water vessels. Whilst we remain focused in Southeast Asia and India, we are actively bidding for work in other regions such as the Middle East to strengthen and diversify the depth of our order book and customer base.”