Swiber Q1 2008 Results

Swiber 1Q earnings soars 184% to US$10.4million on continued influx of EPCIC projects

• Contribution from Indonesian projects and shipyard business

• Order book totaling US$476 million as at 31 March 2008

SINGAPORE – 14 May 2008 – Swiber Holdings Limited (“Swiber” or together with its subsidiaries, the“Group”), a niche service provider to the offshore oil and gas industry, is barreling strongly ahead in 2008 amidst continued demand for its offshore oil and gas services in the region. Swiber towed in its strongest ever quarter with a top-line that was almost half FY2007’s.

For the 3 months ended 31 March 2008 (1QFY2008), the Group posted revenue of US$70.9 million, a year-on-year increase of 266.9% over US$19.3 million in 1QFY2007. Net profit soared more than 180% to US$10.4 million from US$3.6 million previously. Swiber’s strong first quarter was largely due to increased number of EPCIC projects completed during the period and contributions from its shipyard business.

In 1QFY2008, the Group recorded gross profit and margins of US$18.3 million and 25.9% respectively. Said Swiber’s Executive Chairman and Chief Executive, Mr Raymond Goh, "Demand for our niche services remained strong in the first three months of 2008. During the quarter, Swiber completed threepipeline projects and two installation projects in Malaysia and Indonesia which propelled us to a good, strong start in 2008.”

He continued, “Swiber’s growth momentum in each successive quarter is quite remarkable. We have grown our top-line more than 250% in 1QFY2008 year-on-year, and 16% quarter-on-quarter vis-à-vis US$61.1 million in 4QFY2007. I am very pleased with our results and, with oil prices reaching a historical high of US$126 per barrel just last week, I am confident that, barring unforeseen circumstances, Swiber will be able to continue to perform well in the next nine months based on the schedule of projects to be completed.”

“Currently, Swiber operates a fleet of 28 owned vessels, compared to a mere 10 vessels a year ago. This fleet expansion strategy has significantly reduced our third party charter-in costs and kept our profitability levels healthy. We firmly believe that this strategy will pay off in the longer term as it will give us the necessary scale and vessel capacity to bid for, and handle, more offshore oil and gas projects as well as expand geographically,” said Mr Goh.

Based on the latest results, earnings per share increased to 2.43 US cents (based on 424,350,000 weighted average ordinary shares in issue), from 0.99 US cents in the year-ago period (based on 369,000,000 weighted average ordinary shares in issue). Net asset value per share rose to 44.85 US cents as at 31 March 2008, from 13.13 US cents as at 31 December 2007.

As at 31 March 2008, Swiber’s balance sheet remained healthy with total equity of US$191.0 million and debt to equity ratio of 1.02 times. This compared to total equity of US$177.5 million and debt to equity ratio of 0.53 times as at 31 December 2007.

Sailing ahead on order books of US$476 million

Riding on the crest of continued strong oil prices and sustained demand, Swiber is sailing smoothly ahead. As at 31 March 2008, the Group is sitting on a hefty order book of US$476 million (this excludes the conditional LOI for the installation of platforms and pipelines in the Gulf of Thailand for a period of five years which has an estimated value of approximately US$50 million per year), from US$176 million in March 2007 and US$350 million as at end February 2008.

“Our projects in the region are growing at a healthy rate. In this first quarter, the total value of new projects won in Malaysia, Indonesia, India and Thailand amounted to approximately US$248 million, excluding the US$50 million per year conditional LOI in the Gulf of Thailand for a period of 5 years. And we have taken strategic steps to further deepen our penetration into these markets as well as new markets in the Asia Pacific region,” said Mr Goh. To spearhead its growth, Swiber will continue on its fleet expansion strategy, with the aim of increasing the number and technological capabilities of its vessels. In addition, the Group has extended its capabilities to subsea and deepwater activities; and ship building, design and engineering. The Group will continue to explore strategic alliances throughout the Asia Pacific and Middle East regionas part of its strategy to increase its presence geographically. To this end, Swiber inked a MOU(“Memorandum of Understanding”) on 30 April 2008 with Thailand’s CUEL Limited (“CUEL”), allowing both companies to jointly pursue offshore EPCIC (Engineering, Procurement, Construction, Installationand Commissioning) projects in the Asia Pacific region.

Under this alliance, the competitive advantagesof Swiber and CUEL are merged to offer existing and future customers a consolidated source of expertise to provide turnkey solutions to the regional offshore Oil and Gas industry. CUEL is one of theregion’s foremost offshore EPC fabrication contractors. “Through this collaboration, Swiber and CUEL expect to enhance revenue and earnings growth by crossoffering our products and services. It will also fulfill our objective of strengthening our presence in the Asia Pacific,” commented Mr Goh.