LEAD’s EBITDA improved to USD 9.4 million in FY18 or increased by more than 30% YoY. This was mainly because the company succeeded in achieving the target of increasing utilization in FY18 to almost 60% or increased by more than 27% YoY. The increase in vessel utilization also occurs in large vessels such as AHTS and AHTS-DP, thus boosting an increase in gross profit.
Revenue and Gross Profit
The Company’s Gross Profit increased more than double, from the previous Gross Loss of USD 1 million in FY17 to a Gross Profit USD 1.5 million in FY18. This increase was caused by the decrease of 9% in Cost of Revenue YoY or approximately USD 2.6 million. The decrease in cost of revenue was due to the fact that almost all contracts in FY18 were ‘dry contract’ where the fuel costs were borne by the charterer. So, even though the Company’s revenue in FY18 was slightly less than FY17, around 0.5% less YoY, The Company’s Gross Profit increased compared to previous year.
General and Administrative Expenses
The Management continues in success to maintain and keep efficient operations especially in the indirect costs, thereby is able to keep pushing reduction from USD 4.3 million to USD 3.9 million in FY18 or dropped by 9% YoY.
Profit for The Year and Asset Impairment
With the condition of weakening prices of the offshore oil and gas support vessels, the company has again stated USD 36.1 million impairment.
Aside from impairment, the Company’s profit increased from the previous loss of USD 12.9 million to a loss of USD 9.3 million or improved by 28% YoY.
Despite the increase in demand for offshore oil and gas supporting vessels, the Company continues to maintain and offer competitive charter rates while providing superior services and highest safety standard. This aim to further improve vessels’ utilizations. On the other hand, marketing innovation is urged to find and create needs not only directly from oil and gas companies, but also from rig providers and oil and gas supporting contractors. This will also improve the Company’s dependence on few customers or more diversified.
For 2019, the Company’s main target is to increase vessels’ utilization at the utmost, to still provide competitive charter rates, to further lower operating expenses and to always provide superior services and highest safety standards. Up to mid-March 2019, the Company has received USD 21 million worth of contracts.
For further information, please contact:
CFO, Corporate Secretary & Corporate Relation
Telp (62-21) 6471 3088