Jaya Holdings Limited : Jaya delivers strong results for 2Q FY 10 on the back of Robust Vessel sales and disposals

13 Tuas Crescent

Singapore 638707

Tel: +65 6265 1010

Fax: +65 6864 5555

Jaya delivers strong results for 2Q FY10 on the back of robust vessel sales and disposals

" Revenue increases 172%

" Net profit attributable to equity holders improves to $35.3 million, up

" Successful financial restructuring completed on 9 February 2010

For the Second Quarter ended 31 December 2009 ("2QFY10"), Jaya Holdings Limited (the "Company", and together with its subsidiaries, the "Group") reported consolidated revenue of $102.7 million or 172% higher than that of the previous corresponding quarter ("2QFY09").
• The Group's shipbuilding division recorded higher revenue of $88.1 million, or
536% higher than that of 2QFY09. Five vessels were completed and sold compared to none sold in 2QFY09.
• The Group's chartering division reported a 38% drop in revenue to $14.6 million due to lower fleet utilisation of 73% for 2QFY10 compared to 87% in 2QFY09 and a smaller fleet size. The decrease in fleet utilisation is partially offset by the improved average daily vessel charter rate of $11,143, from $10,986 in 2QFY09. This higher average daily vessel charter rate was achieved due to better fleet composition and higher charter rates for some of the vessels which were contracted for earlier under stronger market conditions.
The Group's Net Profit attributable to equity holders for the quarter under review amounted to $35.3 million, a 32% increase over 2QFY09. Excluding restructuring costs of $21.7 million, the net profit would have been $57.0 million, a 113% increase over the previous corresponding quarter.

13 Tuas Crescent

Singapore 638707

Tel: +65 6265 1010

Fax: +65 6864 5555

• The Shipbuilding Division recorded a net profit of $33.4 million excluding restructuring cost of $15.2 million in 2QFY10, against a loss of $12.9 million in
2QFY09. The improvement was mainly due to higher vessel sales.
• The Offshore Shipping Division recorded a net profit of $22.9 million excluding restructuring cost of $6.5 million, against $39.2 million in 2QFY09. The decrease in net profit was due to lower disposal gains as a result of lower value vessels being disposed of.
The chartering market continues to be soft. The Group is facing stiffer competition
in securing charter contracts, which is made more challenging when its charter fleet is expected to grow with new vessels coming on line.
However, over the past 6 months, the Group has seen an increase in buyer enquiries for vessels. The Group capitalising on the improved market sentiment, has sold 13 vessels and continues to see buying interests for its vessels. The reconfiguration of the new vessel building programme and the acceleration of vessel sales and disposals have contributed to the strengthening of the Group's financial position. The Group will continue to closely monitor market conditions and seek to increase vessel sales. In addition, the Group will leverage upon its cash resources to accelerate vessel completions and deliveries where appropriate, to take advantage of market opportunities.
As noted in previous announcements, the Group has been undergoing a consensual restructuring exercise with its creditors. We are pleased to announce that the schemes of arrangement have each been approved unanimously by the scheme creditors present and voting on 28 January 2010 and sanctioned by the High Court of
Singapore on 9 February 2010. These schemes of arrangement will take effect from 25
February 2010. Under the terms of the schemes, the Group will restructure its existing unsecured bank borrowings into 5-year USD-denominated secured obligations with principal holiday for the first two years, and repayment of principal in quarterly unequal instalments from year 3 onwards.
The recent rise and increased stability in the oil prices could provide support to increased exploration and production spending, which could add to demand for offshore support vessels. Following its successfully completed restructuring exercise, the Group is well positioned to capitalise on a sustained recovery of the offshore oil and gas sector when it happens.

13 Tuas Crescent

Singapore 638707

Tel: +65 6265 1010

Fax: +65 6864 5555

Jaya's CEO Mr Chan Mun Lye said: "We are pleased with the good results delivered in the first half of the current financial year, which was an uncertain and difficult period. Despite the difficult environment, we were able to achieve a robust level of vessel sales at competitive prices and improve our cash position significantly. With the successful completion of the restructuring exercise, my team and I will now be more focused on driving the business of the Group going forward."
ABOUT THE COMPANY www.jayaholdings.com

Jaya is an offshore chartering and shipbuilding group 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 19 vessels, services a wide base of high- profile clients across the globe. Jaya is vertically integrated with shipbuilding capabilities 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.

+65 6265 1010 enquiry@jayaholdings.com

+65 62651010 enquiry@jayaholdings.com

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