The board of directors of Jutal Offshore Oil Services Ltd. announced that based on the preliminary review of the unaudited consolidated management accounts of the Group, it is expected that the Group may record a decline of approximately 50% in the consolidated net profit attributable to the owners of the company for the twelve months ended December 31, 2014 as compared with that for the corresponding year of 2013. Based on the information currently available, such substantial decrease in profit for the year 2014 was mainly due to (i) reduction in gross profit due to gross margin decline caused by extension of construction period of certain large projects; and (ii) decline of share of profit from the associate company -Penglai Jutal Offshore Engineering Heavy Industry Co. Ltd. because of the reduction of overall workload in 2014 than that in 2013 due to delay of some large projects.