Jutal Offshore Oil Services profit down 52% to CNY16.44mn

The company captures every opportunity to accelerate business development as it forge itself to be an international first-class oil and gas processing equipment and technical services provider.

Jutal Offshore Oil Services Limited (“Jutal Oil Services”), an Chinese leading integrated engineering, fabrication and technical services provider in oil and gas industry, on Sunday announced its unaudited interim results for the six months ended 30 June 2011.

During the period under review, the Group recorded a total turnover of RMB208,962,000, an increase of RMB6,771,000 or approximately 3.35% compared with the corresponding period last year. The total gross profit of the Group amounted to RMB52,373,000 for the reporting period, an increase of RMB4,741,000 compared with RMB47,632,000 in the corresponding period last year. The overall gross profit margin increased from 23.56% in the corresponding period last year to 25.06% in current period. Profit attributable to shareholders decreased 51.88% to RMB16,440,000 mainly due to the significant decline of the profit from the associate company, Penglai Jutal. Basic earnings per share for the year under review were RMB0.033.

In the first half of the year, the Group has orderly executed fabrication and service provision activities, and actively implemented its development strategy through continuing market exploration, project implementation and development of its core competences. The Group has achieved progress on technical research and development, securing new business and implementing marketing activities. Turnover from the provision of technical support services for shipbuilding industry business has increased by RMB8,452,000 or approximately 30.53% compared with the corresponding period in last year. Turnover from the provision of technical support and related services for the oil and gas industry and sales of equipment and materials business has increased by RMB4,415,000 or around 10.37% over the corresponding period last year. Turnover from the fabrication of oil and gas facilities and oil and gas processing skid equipment business in the first half of the year has decreased by approximately 3.73% compared with the corresponding period in last year because some important projects are mainly to be undertaken in the second half.

Mr. Wang Lishan, Chairman of Jutal Oil Services said, “Having thorough understandings of the uncertain international economic situation ahead and resulting possible pressure on the growth speed of the oil and gas industry, the Group will enhance the core engineering capabilities in accordance with an international standard of design, enhance manufacturing capabilities and build up the capability of providing turnkey solutions to engineering, procurement and construction. In this way, we will transform from a manufacturer to an EPC turnkey solution provider. In the oil and gas and shipbuilding industry, we will rely on our strong design capabilities to improve our integrated services. With all these efforts, we will strive for continuous, high speed and healthy growth and bring better returns to shareholders.”