It’s a Good Time to be an Offshore Contractor, Ezra Holdings Posts 244% Leap in Net Profit

Lewek Scarlet, a 180 ton bollard pull anchor handling tug, image: EMAS

It’s been a helluva year so far for Singapore-based offshore contractor, Ezra Holdings Limited, who has reported a 244% leap in net attributable profit (PATMI) to USD $22.4 million for the third quarter.

Ezra’s revenue rose 61% year-on-year to USD $265.6 million for the quarter, due mainly to the commencement of new subsea projects awarded after Ezra’s acquisition of the AMC Group (Aker Marine Contractor) in March last year. EMAS AMC, the subsea division, was also largely the driver for the 53% increase in Ezra’s gross profit to US$44.4 million in 3Q FY12.

Mr Lionel Lee (黎才德), Ezra’s Managing Director, said: “This strong set of results is born of Ezra’s sustained commitment to both operational and financial excellence. It also reflects the successful execution of our subsea strategy over the past 12-18 months.”

“While EMAS AMC’s revenue is expected to be lumpy in the next two to three quarters due to the nature of project execution and revenue recognition, operations should remain profitable overall,” he added.

For the nine months to 31 May 2012 (9M FY12), Group PATMI more than doubled to US$57.7 million, in line with a 94% rise in turnover of US$657.9 million. EMAS Marine, the offshore support services division, added US$39.4 million to the increase in revenue.

Mr Lee said: “As a global company, we are constantly developing and streamlining our businesses and operations to ensure that Ezra can sharpen its competitive edge in the international arena. We will also continue to manage our financial resources actively so that our balance sheet remains sound and supports our growth aspirations.”

“Subsea developments and ongoing exploration and production (E&P) work in offshore O&G fields will continue to drive demand for our services.” Mr Lee added.

In addition, EMAS Marine, the offshore support services division of Ezra Holdings Limited, announced today that it has won six charter contracts worth a total of approximately US$87 million for both platform supply vessels (PSVs) and anchor, handling, towing and supply (AHTS) vessels.  The average duration for these contracts is two years and these vessels will operate in Asia and Africa.

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