Page 49 - Oil&Gas-AustralAsia-2015-Issue-3
P. 49
S INGAPORE
Ezra faces bleak market with negative
balance sheet ByMarieRYAN
The Lewek Constellation. Image courtesy of the Ezra Holdings
Singapore listed Ezra Holdings Limit- management strategies across the group between EMAS AMC, EMAS Energy
ed has recorded a three per cent drop and its subsidiaries. and EMAS Offshore,” Ezra Holdings said.
in revenue to US$390 million for the Revenue from EMAS AMC, Ezra’s In a show of success the group’s Marine
third-quarter of the financial 2015 year, Subsea Services division, decreased by Services division, TRIYARDS, report-
adding to a reported 30 per cent drop in US$21.0 million in the 2015 third-quar- ed an increase of US$25.7 million in
profit when compared to its earnings a ter when compared to the same period. revenue for the third quarter of 2015
year ago. The company said in a statement its compared to a year ago.
Ezra Group Chief Executive Lionel cash flow increase was due to projects Ezra said the increase was mainly due
Lee said he acknowledged market being in their early stages, requiring to new sources of revenue from the
conditions remained difficult, but saw minimal operation cost, when com- newly acquired Strategic Marine enti-
longer-term prospects in the industry as pared to a year ago. ties, namely Strategic Marine (S) Pte.
it shows gradual improvement. “However, the services of the division Ltd. and Strategic Marine (V) Company
The third quarter of the past finan- remain in demand, with EMAS AMC Limited. TRIYARDS also recently an-
cial year has seen Ezra report a loss recently announcing that it has signed nounced new contracts worth US$175
of US$3.0 million, a turn-about from a six year Long Term Agreement with million, bringing the total number of
the US$8.3 million profit made by the one of the world’s largest national oil contract wins to seven since the begin-
group in 2014. Since the beginning of companies, Saudi Aramco, with exer- ning of the 2015 financial year at a value
2015 Ezra’s has been challenged by a cisable options to extend for another of US$500 million.
falling share price, its value dropping by six years in a consortium with Larsen & “We continue to win projects across the
almost 70 per cent. All as it manages a Toubro Hydrocarbon Engineering,” the group, with total contract wins in excess
heavy debt load of around US$12 mil- group announced in a statement. of US$800 million, including options,
lion, representing more than a quarter EMAS Offshore Limited, the Group’s in the past three quarters. We feel
of the group’s gross profit in a challeng- Offshore Support and Production Ser- that we are in a better position to ride
ing economic environment. vices division, saw third-quarter 2015 through the tough market conditions,
In response to its decline the group revenue decrease by US$16.1 million after implementing successful cost effi-
recently underwent a focussed capi- due to weakness in both the shallow ciency initiatives. At the same time, as
tal raising with a rights issue to gain water anchor handling, towing and sup- shared earlier this year, we will continue
US$150.6 million from the market in ply (AHTS) and shallow water platform maintaining our cost discipline to im-
late June. The Ezra Chief Executive said support vessels (PSV) segments and the prove margins and shareholder value,”
the group is also currently working to absence of revenue from one leased-in Mr Lee said.
rationalise non-core assets to accelerate vessel which was returned to the owner “In addition, we have no more mate-
the de-leveraging of and strengthening in the second half of the 2014 financial year. rial capital expenditure with Lewek
the group’s balance sheet. “EMAS Offshore has recently an- Constellation now fully operational
According to Ezra Holdings the third nounced new contracts valued at more and working in the Gulf of Mexico. We
quarter of the 2015 financial year saw than US$54 million in the Gulf of Thai- can thus focus our efforts on cash flow
the company’s operating cash flow land and West Africa region, showcas- generation moving forward.”§
improve as a result of disciplined cost ing synergy and integrated capabilities
A Awww.oilandgasaustralasia.com JULY/AUGUST 2015 OIL & GAS ustral SIA 47
Ezra faces bleak market with negative
balance sheet ByMarieRYAN
The Lewek Constellation. Image courtesy of the Ezra Holdings
Singapore listed Ezra Holdings Limit- management strategies across the group between EMAS AMC, EMAS Energy
ed has recorded a three per cent drop and its subsidiaries. and EMAS Offshore,” Ezra Holdings said.
in revenue to US$390 million for the Revenue from EMAS AMC, Ezra’s In a show of success the group’s Marine
third-quarter of the financial 2015 year, Subsea Services division, decreased by Services division, TRIYARDS, report-
adding to a reported 30 per cent drop in US$21.0 million in the 2015 third-quar- ed an increase of US$25.7 million in
profit when compared to its earnings a ter when compared to the same period. revenue for the third quarter of 2015
year ago. The company said in a statement its compared to a year ago.
Ezra Group Chief Executive Lionel cash flow increase was due to projects Ezra said the increase was mainly due
Lee said he acknowledged market being in their early stages, requiring to new sources of revenue from the
conditions remained difficult, but saw minimal operation cost, when com- newly acquired Strategic Marine enti-
longer-term prospects in the industry as pared to a year ago. ties, namely Strategic Marine (S) Pte.
it shows gradual improvement. “However, the services of the division Ltd. and Strategic Marine (V) Company
The third quarter of the past finan- remain in demand, with EMAS AMC Limited. TRIYARDS also recently an-
cial year has seen Ezra report a loss recently announcing that it has signed nounced new contracts worth US$175
of US$3.0 million, a turn-about from a six year Long Term Agreement with million, bringing the total number of
the US$8.3 million profit made by the one of the world’s largest national oil contract wins to seven since the begin-
group in 2014. Since the beginning of companies, Saudi Aramco, with exer- ning of the 2015 financial year at a value
2015 Ezra’s has been challenged by a cisable options to extend for another of US$500 million.
falling share price, its value dropping by six years in a consortium with Larsen & “We continue to win projects across the
almost 70 per cent. All as it manages a Toubro Hydrocarbon Engineering,” the group, with total contract wins in excess
heavy debt load of around US$12 mil- group announced in a statement. of US$800 million, including options,
lion, representing more than a quarter EMAS Offshore Limited, the Group’s in the past three quarters. We feel
of the group’s gross profit in a challeng- Offshore Support and Production Ser- that we are in a better position to ride
ing economic environment. vices division, saw third-quarter 2015 through the tough market conditions,
In response to its decline the group revenue decrease by US$16.1 million after implementing successful cost effi-
recently underwent a focussed capi- due to weakness in both the shallow ciency initiatives. At the same time, as
tal raising with a rights issue to gain water anchor handling, towing and sup- shared earlier this year, we will continue
US$150.6 million from the market in ply (AHTS) and shallow water platform maintaining our cost discipline to im-
late June. The Ezra Chief Executive said support vessels (PSV) segments and the prove margins and shareholder value,”
the group is also currently working to absence of revenue from one leased-in Mr Lee said.
rationalise non-core assets to accelerate vessel which was returned to the owner “In addition, we have no more mate-
the de-leveraging of and strengthening in the second half of the 2014 financial year. rial capital expenditure with Lewek
the group’s balance sheet. “EMAS Offshore has recently an- Constellation now fully operational
According to Ezra Holdings the third nounced new contracts valued at more and working in the Gulf of Mexico. We
quarter of the 2015 financial year saw than US$54 million in the Gulf of Thai- can thus focus our efforts on cash flow
the company’s operating cash flow land and West Africa region, showcas- generation moving forward.”§
improve as a result of disciplined cost ing synergy and integrated capabilities
A Awww.oilandgasaustralasia.com JULY/AUGUST 2015 OIL & GAS ustral SIA 47
