Falcon Energy Group today announced a net profit after tax and minority interest of US$28.1 million ($39.5 million) for the full year ending 31 December 2009, compared to US$27.6 million it achieved for the adjusted 12 months to 31 December 2008.

Falcon Energy Group is a provider of integrated support services for the Offshore Marine and Oil & Gas industries, serving clients along the entire oil production cycle from initial exploration to production and post-production, with a specialist focus on the production phase of oilfield activities.

Group turnover, at US$89.2 million, was 51% higher than the previous US$59.1 million that it achieved during fiscal 2008. The group’s Marine Division, Oilfield Division and Project Division achieved US$43 million, US$39.7 million and US$6.5 million respectively. The strong growth in turnover partly reflected the eight months’ contribution from Longzhu Group of Companies to the Oilfield Division which totalled approximately US$30.7 million. The increase in group revenue was driven largely by revenue from its Marine and Oilfield Divisions segment which made up more than 90% of total turnover.

In terms of geographic area, activities in Asia continued to lead revenue growth accounting for US$66.7 million or 75% of group turnover and America made US$10.1 million or 11% of Group turnover. Others (including the Middle East) made US$12.5 million accounting for the remaining 14% of group turnover.

Other operating income totalled US$4 million, which was inclusive of a US$1.0 one- off gain on disposal for the disposal of 51% equity interest in one of the subsidiaries in the Project Division and negative goodwill of US$0.2 million on acquisition of the Longzhu Group of Companies.

Gross profit margin stood at 44% compared to 56% it achieved previously, generally due to the lower margin from the Oilfield Services Division. Gross profit margin for the Marine Division remained constant at 61% (FY2008: 62%). The gross profit margin for Oilfield Services Division was 22% (FY2008: 35%). The difference in margin was due mainly to the consolidation on the acquisition of Longzhu Group of companies. For the Project Division, the gross profit margin stood at approximately 59%.

The board of directors has proposed a one-tier tax exempt final dividend of $0.01 per ordinary share. An interim dividend of $0.005 per ordinary share was paid earlier in the year making total dividend for FY2009 to be $0.015 per ordinary share. This works out to a dividend yield of 2.2% based on 26 February 2010 closing share price of $0.685 and dividend payout ratio of 40%.