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    Ezra Holdings strengthens balance sheet, improves cashflow and deleverages

    Company News // November 12, 2015

    Ezra Holdings says it managed to maintain profitability and strengthen its balance sheet even in the currently tough market conditions. Revenues improved and a successful rights issue supported the group’s deleveraging strategy. The company also recently entered into a collaboration agreement with Chiyoda in order to enhance the subsea-to-surface offering of its subsea division, EMAS AMC. The group has a backlog of in the order of US$2.0 billion.

    Ezra Holdings Limited reported an increase in revenue from continuing operations of 11 per cent to US$543.8 million in the full year ended 31 August 2015 (FY15), compared to the same period a year ago (FY14). The group’s marine services division (which includes engineering and fabrication activities under TRIYARDS) recorded revenue growth which was offset by the decline in revenues from the offshore support and production services division (EMAS Offshore Limited).

    For FY15 (the year ending 31 August 2015), the group’s continuing operations posted an 82 per cent increase in EBITDA to US$232.3 million, and adjusted EBITDA from continuing operations increased 27 per cent to US$145.5 million. Adjusted PAT from continuing operations also increased 42 per cent to US$20.4 million. Net cash generated from operating activities increased to US$142.5 million in FY15, an increase of US$42.5 million as compared to FY14. The group’s discontinued operations saw a net loss of US$40.3 million in FY15 in the midst of challenging markets as well as experiencing one-off vessel-related circumstances in the first quarter of FY15. Nevertheless, EMAS AMC still achieved key operational milestones in the successful delivery of Lewek Constellation and the successful completion of the vessel’s inaugural reel-lay projects for Noble Energy.

    Another division, EMAS Offshore Limited, also performed well despite the challenging market. The division strengthened its management team and focused on improving vessel management in FY15. Its strategy going forward will be to improve operational efficiency while maintaining a high rate of overall deployment in key regions within Southeast Asia and growth markets such as West Africa. The Triyards shipyard, also part of the group, continues to expand its product range, with a recent slew of contract wins comprising chemical tankers and high speed craft.

    Lionel Lee, Ezra’s group CEO and managing director, said the offshore oil and gas sector remains in a volatile state. “However,” he said, “we firmly believe in the fundamentals of the oil and gas industry. Despite market uncertainties, Ezra has managed to maintain its revenue for this financial year. The group is working to rationalise non-core assets to further strengthen its balance sheet.

    “We have achieved what we have set out to do at the start of FY15, which is to successfully roll out our flagship subsea construction vessel Lewek Constellation, contain costs, improve cash flow and deleverage the balance sheet and address significant debt maturities that were due in September 2015. With the proposed joint venture, Emas Chiyoda Subsea, in place, we will be able to leverage synergies to competitively bid for larger and more complex tenders.”

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