Ezra Holdings records a loss in latest quarter - expects tough year aheadCompany News // January 15, 2016
Ezra Holdings Limited has reported a revenue of US$152.3 million and net loss of US$53.7 million for the latest quarter, which eneded at the end of November 2015.
The group’s marine services division, Triyards, reported an increase of US$45.4 million in revenue for 1QFY16 compared to a year ago. The increase was mainly due to higher contribution from the Triyards Group as there were more self- elevating units and vessels under construction as compared to the previous corresponding period, as well as higher contribution from engineering design work.
The group’s offshore support and production services division, EMAS Offshore Limited, saw a decline in revenue of US$19.3 million. The decrease in revenue was mainly due to general weakness in the offshore industry in addition to seasonal fluctuation as a result of monsoon in Asia. The company said thge shallow water PSV segment continues to remain weak.
Due to softness in the offshore support vessel segment, gross profit margin for the group fell from 22 per cent in 1QFY15 to 10 per cent in 1QFY16 and gross profit for the period declined to US$15.7 million. Loss after tax came in at US$53.7 million which included a realised hedging loss of US$13.9 million.
Lionel Lee, Ezra’s Group CEO and Managing Director, said: “The global oil and gas industry continues to be challenging for the offshore marine and subsea companies. The volatility of the oil price and the depressed state of the oil and gas industry has led to reduced activity and uncertainty in new contract awards. Like other oil and gas support services companies, we are currently working in opposition to industry tide and against difficult market conditions during this downcycle. FY2016 will be a tough year for the group."