Newly-listed Kreuz Holdings, the subsea solutions provider for the oil and gas industry, reported a 6% increase in revenue to US$13.6 million ($17.5 million) for the three months ended September 30, 2010 (3QFY2010) from US$12.8 million for the three months ended September 30, 2009 (3QFY2009). Profit attributable to equity holders of the company increased marginally by 1.2% to US$0.9 million in 3QFY2010.

In terms of revenue by customers, contributions from related companies comprised 43.7% of revenue and third-party customers made up the remaining 56.3% in 3QFY2010.

The group’s gross profit increased by 114.6% to US$4.8 million in 3QFY2010 from US$2.2 million in 3QFY2009. Correspondingly, gross profit margin increased from 17.3% in 3QFY2009 to 34.9% in 3QFY2010. This is attributed by higher gross profit margins projects in 3QFY2010.

The decrease in net profit margin by 0.8% to 9.5% in 3QFY2010 from 10.3% in 3QFY2009 was due mainly to the recognition of one-off IPO related expenses of approximately US$1.0 million in 3QFY2010. If IPO related expenses were excluded, the net profit margin would have been 15.6% for 3QFY2010.

As at September 30, 2010, the group had cash and cash equivalents of approximately US$15.1 million.

Kreuz says the prospects for the offshore exploration and development in the oil and gas sector appear healthy. A recovery in the global economic outlook coupled with relatively stable oil prices is expected to encourage capital expenditure, which in turn should result in an increase in demand for the group’s subsea services.

In addition, the group’s subsea services will stand to benefit from the increasing inspection, repair and maintenance (IRM) work in relation to the growing number of older offshore installations that require such maintenance.