ES Group bags deal to construct two jack-up drilling rig blocks

The group sealed a larger repeat order from a major Singapore shipyard.

Catalist-listed ES Group (Holdings) Limited (the “Company”) announced Tuesday that its wholly-owned subsidiary, ES Offshore Engineering Pte. Ltd. has won another order to construct two jack-up drilling rig blocks for a major Singapore shipyard, following an order by the same customer, which had been won by ES Group through a tender process as announced on 20 June 2011.

This major customer ordered two additional jack-up drilling rig blocks as part of a high specification jack-up rig’s main hull after assessing ES Group’s capabilities and quality from numerous projects, awarded by the same major customer, that the Group had worked on, previously. 

The total size of the jack-up drilling rig blocks amounts to approximately 1,320 metric tonnes. This is almost double that which was ordered in the previous contract, making this the largest jack-up drilling rig blocks order received by the Company to date. 

Construction for the two jack-up drilling rig blocks will commence in November 2011 and delivery is scheduled for July 2012. 

The revenue from these orders is expected to contribute to the Group’s financial performance in the second half of the financial year ending 31 December 2011 and in the first three quarters of the financial year ending 31 December 2012, according to an ES Group report. 

ES Group’s Chief Executive Officer, Mr Christopher Low, said, “We are pleased to have this opportunity to continue our long association with the customer and we feel privileged to be a part of such an important rig building project of one of Singapore’s leading shipyards. The repeat orders are a testimony to our world-class capability within high quality offshore and marine shipbuilding as well as our ability to deliver orders on time and within budget.” 

For the six months ended 30 June 2011 (“HY2011”), ES Group reported that its net profit attributable to owners of the Company increased 66.2% to S$1.8 million, outpacing revenue growth of 31.3% to S$23.6 million, as compared to the previous financial period.