Indo Straits expects 2014 revenues to fall on lower offshore logistic contract

JAKARTA (Rambu Energy) – PT Indo Straits Tbk, an offshore engineering and logistic service company, said it expects full year 2014 revenues to decline to US$28.58 million from US$36.48 million last year due to weaker price of coal. The falling of coal price encouraged coal producers to avoid signing long-term offshore logistic contract with the company.

The company estimated that offshore logistic service revenue contribution to decline to 59.43 percent this year, from 76.16 percent in 2013, while offshore engineering service revenue contribution is expected to rise to 40.57 percent from 23.84 percent last year.

As a result, its net profit is expected to record loss of US$4.67 million, compared to net profit of US$3.44 million in 2013.

Its estimated contract value is expected to reach US$67.69 million in 2014, compared to US$55.28 million last year. Of this, new contract is projected to reach US$48.89 million.

Indo Straits is currently taking part in a number of offshore engineering project tenders valued at US$90-100 million.

The company expects the carried over contracts for 2015 would reach US$21.40 million, while the potential new contracts reach US$20.15 million. (*)