Jaya Holdings Limited (the “Company”, and together with its subsidiaries, the “Group”) reported consolidated revenue of US$82.2 million and net profit of US$43.8 million for the financial year ended 30 June 2012. The Group’s total revenue for the financial year under review was 17% lower than the previous financial year. The decrease in Group revenue was mainly due to fewer vessels sales during the year.The Offshore Support Services
  Division’s revenue rose 33% to US$69.6 million and accounted for 85% of Group revenue. The improvement was due to higher charter utilization of 70% for the year under review compared to 61% for the previous financial year and a larger fleet of 28 vessels compared to 23 vessels a year ago.
Net profit for the division was US$31.1 million compared to US$46.8 million in the previous financial year. The decrease was due mainly to lower vessel disposal gains of US$7.2 million from four vessels compared to gains of US$35.5 million from the disposal of five higher specifications vessels in the previous year.
The Offshore Engineering Services Division recorded significantly lower revenue of US$12.6 million for the year under review as a result of fewer vessel sales; one vessel was sold compared to three vessels previously. As a result, net profit for the division was US$10.6 million compared to US$26.5 million in the previous financial year.
The Group’s Net Profit for the financial year was US$43.8 million, a 33% decrease from US$65.0 million in the previous financial year. It included a write-back of impairment losses and a provision for cancellation / deferment costs of US$10.2 million. In the previous financial year, there was a gain of US$11.1 million from the disposal of assets from the Nantong shipyard.
Mr Venkatraman Sheshashayee, Chief Executive Officer and Executive Director of Jaya, said: “Despite challenging offshore market conditions and the uncertainty in the global financial markets, the Jaya Group of Companies is continuing to build on its order momentum this year, accumulating a charter contracts backlog of more than US$198 million.”
“We have decided, as part of the Group’s new strategy, to commit ourselves to provide lifetime customer value to our clients in targeted markets in the offshore energy services domain. This commitment shall be demonstrated by the caring, professionalism, dedication and actions of our people, the reliability and replicability of our processes and our respect for the world’s environmental concerns.”
The Group’s financial position is robust; as at end of June 2012, the Group has cash and cash equivalents of US$200.5 million and a low net gearing of 0.09.
Shareholders’ equity also increased from US$453.0 million to US$498.2 million, which translates to a Net Asset Value per share of US$0.65. (FY2011: US$0.59) Rising E&P spending targeted at stabilising the Reserve Replacement Ratio will continue to underpin a favourable long term outlook for the offshore sector. Demand
for deepwater (water depths of more than 600 ft) assets is also on the rise, with the main areas of deepwater activity located in West Africa, the US, Gulf of Mexico and Brazil. Although the recovery in rates for offshore supply vessels has been slow, the improving supply-demand balance, the increasing preference for newer tonnage and sub-sea vessels will add traction to the recovery in 2013.
A total of 12 vessels will be delivered over the next two years under a building programme. As most of these are technologically advanced vessels and capable of sub-sea support, they will be timely additions to the fleet. Jaya, with one of the youngest and most sophisticated fleet of OSVs in the region, is certainly well positioned
to take advantage of the impending upturn of the industry. It has also secured contracts of US$84 million for two vessels in the build programme that will be delivered in the first quarter of the next financial year.
Under the leadership of new CEO, Mr Venkatraman Sheshashayee, the Group is rebranding its businesses. In July this year, the Offshore Engineering Services Division signed a collaboration agreement with IHC Merwede that enables the Group to access new markets and engage with customers to build ‘technically predictive’, fit-for-purpose assets that will help them increase their operational efficiency, reduce their operating costs and deliver their clients’ expectations. The Offshore Support Services Division is also investing in enhancing its vessels and expanding its services to new markets beyond Asia such as West Africa, Australia and Mexico.
Mr Sheshashayee added: “With the Group renewing itself, expanding the scope of our customer involvement, and extending the range of our services to our customers and enhancing the overall customer experience, the Group believes that the initiatives we have implemented have begun delivering favourable results. Going forward, the Group is confident it will be well positioned to benefit from opportunities created by our customers’ success and growth in the robust offshore energy sector.”
Source: Jaya Holdings