Rig sales power up earnings at Falcon Energy

Falcon Energy has posted a sharp jump in second quarter net profit to US$38.9 million from US$1.9 million previously.

Revenue for the three months to Sept 30 rocketed up to US$183.5 million from US$17.8 million in the same period last year.

Revenue from marine division increased from US$10.4 million to US$17.8 million as a result of more vessels being deployed.

Revenue from oilfield services division rose from US$5.4 million to US$35.8 million, due mainly to the procurement of a one-off short term contracts in the second quarter as well as the increase in the provision of sundry services rendered.

Revenue from drilling division was US$127.8 million and this was the income derived from the disposal of two jack-up rigs.

As a result of the significant additional revenue contribution from drilling division, gross profit increased substantially from US$4.7 million to US$81.6 million.

This also improved the overall average gross profit margin from 26.5 per cent to 44.5 per cent.

Earnings per share swelled to 4.78 US cents from 0.24 US cent previously while net asset value per share grew to 28.27 US cents compared to 24.44 US cents as at March 31.

The company has declared an interim dividend of half a cent a share.