Falcon Energy Group has announced a net profit after tax and non-controlling interest of US$8.1 million ($11.2 million) for the three months to 31 March 2010, up 87% over the US$4.3 million it achieved for the previous corresponding period.

Group revenue, at US$18.1 million, was 85% higher than the previous US$9.8 million that it achieved previously. The strong growth in turnover was driven largely by revenue from its Marine Division which registered the lion’s share at US$13.2 million or 73% of total revenue. The increase was due largely to the contribution from two additional vessels compared to the previous corresponding period.

This was followed by Oilfield Services Division which achieved US$3 million or 17% resulting from the inclusion of three months’ contribution from Longzhu Group of Companies. Project Division made up the remaining US$2.0 million.

Along with the increase in revenue, gross profit saw an increase of 75% or US$4.3 million from US$5.7 million recorded in the preceding corresponding period. Gross profit margin for the Marine Division was 64%, an improvement from 62% previously while for Oilfield Services Division, the margin declined marginally from 36% to 35%. The gross profit margin for Project Division was approximately 27%. This resulted in a slightly lower average gross profit margin for the group at 55% for the three months ended 31 March 2010 against 58% in the preceding period.

The group’s financial position remained healthy with a strong balance sheet. Its positive net working capital of US$76.8 million is an improvement of 29% over that recorded at the end of 31 December 2009. The group continued to maintain a healthy liquidity position with cash and cash equivalent of US$56.1 million with positive Net cash flows generated from operations at US$3.2 million for the period ended 31 March 2010.