Jutal Offshore Oil Services (HKG:3303) announced that its profit for the year ended 31 December 2011 is expected to have a relatively great decline as compared with that for the year ended 31 December 2010.

The board of Jutal considers that such expected decline would be mainly due to (i) the significant decline in the share of profit for the year ended 31 December 2011 of an associate company, i.e. Penglai Jutal Offshore Engineering Heavy Industries Co., Ltd. because its project quantities in the year 2011 is less than that in the preceding year; and (ii) Jutal adopted a lower gross margin strategy for some new types of projects in the year to enhance market exploring.