JAYA HOLDINGS LTD 
By 13 Tuas Crescent
Singapore 638707
Tel: +65 6265 1010
Fax: +65 6864 5555
Jaya's 1st Quarter FY10 Results Announcement
" Revenue decreases 36%
" Net profit attributable to equity holders improves to S$32.5 million
SINGAPORE, 4 November 2009 FOR IMMEDIATE RELEASE
For the First Quarter ended 30 September 2009 ("1QFY10"), Jaya Holdings Limited (the "Company", together with its subsidiaries, the "Group") reported consolidated revenue of S$40.4 million or 36% lower than that of the previous corresponding quarter ("1QFY09").
• The Group's chartering division reported a 14% drop in revenue to S$21.8 million due to a smaller fleet size of 22 vessels compared to 28 vessels a year ago and lower utilisation rate of 81% compared to 90% in 1QFY09 despite higher average daily vessel charter rate of S$12,915 compared to S$10,509 in 1QFY09.
• The Group's shipbuilding division recorded lower revenue of S$18.5 million, or
50% lower than that of 1QFY09. Sales from two vessels under construction
were recognised at an average rate of 22% for 1QFY10, compared to the average rate of 16% recognised for seven vessels under construction in 1QFY09.
Despite having a lower Gross Profit of S$20.8 million in 1QFY10 against a Gross Profit of S$35.0 million in 1QFY09, the Group's net profit attributable to equity holders of the Company ("PAT") for 1QFY10 improved to S$32.5 million from S$9.1 million reported for 1QFY09. This was primarily due to an accounting charge of S$27.0 million arising from the "marked to market" valuation of the Group's foreign exchange ("forex") positions reported in 1QFY09 whereas no similar charge was applicable for 1QFY10. Another contribution was the higher gains of S$24.9 million from the disposal of three vessels in the chartering fleet as compared to gains of $12.3 million from the disposal of two vessels in 1QFY09.
13 Tuas Crescent
Singapore 638707
Tel: +65 6265 1010
Fax: +65 6864 5555
• The Group's chartering division provided the largest contribution of S$34.4 million. Excluding forex gain/loss, the net profit from this division improved
17% from S$28.4 million to S$33.1 million which comprised S$8.2 million from chartering operations and S$24.9 million from vessel disposal gains.
• The Group's shipbuilding division recorded a net profit of S$0.4 million against a loss of S$2.0 million in 1QFY09. Excluding forex gain/loss, the net profit from this division was 96% lower, from S$17.2 million in 1QFY09 to S$0.7 million in 1QFY10.
The Group's committed shipbuilding programme will see newbuilds added to its charter fleet for deployment over the next 12 months. The Group continues to face a challenging and highly competitive operating environment. The industry outlook in the near term continues to be challenging as the imbalance between vessel supply and demand continues to depress vessel pricing and charter rates. The Group has reconfigured its shipbuilding programme to moderate the pace of vessel construction and to cancel or defer certain projects.
Jaya's CEO Mr Chan Mun Lye said: "Although the lower vessel prices have attracted interest from potential buyers, the overall market situation is still challenging in the near term as potential buyers are facing their own difficulties in securing financing. The chartering market continues to be soft and we are bracing ourselves for stiffer competition in securing charter contracts at a time when our own fleet is growing with new vessels coming on line. To mitigate these near term softness in earnings, we are intensifying our marketing efforts on the chartering business while seeking to increase vessel sales and disposals opportunistically, where possible. Nevertheless, with the improving global economic sentiments and the gradual rise of the price of crude oil recently, we are hopeful that this downturn in our business sector could be phased out in the long term."
ABOUT THE COMPANY www.jayaholdings.com
Jaya is an offshore chartering and shipbuilding company providing essential support services to the oil and gas exploration and production ("E&P") industry. Through its chartering division, Jaya owns a versatile fleet of young and sophisticated vessels that cater to the oil & gas sector. Its chartering fleet, currently consisting of 22 vessels, services a wide base of high- profile clients across the globe. Jaya is vertically integrated with shipbuilding capabilities
13 Tuas Crescent
Singapore 638707
Tel: +65 6265 1010
Fax: +65 6864 5555
which allow its chartering operations to enjoy significant cost advantages. Jaya also builds and sells offshore vessels to third party operators and charterers. These vessels are mainly anchor handling tug supply vessels (AHTSes) and platform supply vessels (PSVs), but include work barges as well. Jaya owns three shipyards, located in Singapore, Batam and Nantong
Qidong in China with a total capacity of 91.7 acres spanning a total shoreline of 1,250m.
FOR FURTHER ENQUIRIES MR CHAN FOOK KONG JAYA HOLDINGS LIMITED+65 6265 1010 enquiry@jayaholdings.com
MS THAI KUM FOON JAYA HOLDINGS LIMITED+65 62651010 enquiry@jayaholdings.com
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