Emas Offshore reports sharp jump in Q3 net profit

SINGAPORE - Offshore oil and gas services provider Emas Offshore's third-quarter net profit rose to US$5.2 million (S$7.2 million) from US$182,000 previously, supported mainly by "robust contributions" from the offshore production services division, which comprised two floating production, storage and offloading vessels.

Revenue, however, slumped 15 per cent to US$59.2 million, owing to weakness in both the shallow water anchor handling, towing and supply vessels and the shallow water platform support vessels segments, said Emas in a filing to the Singapore Exchange.

Net profit for the nine months to May 31 jumped to US$163.2 million, even as revenue slipped 11 per cent to US$192.9 million.

Earnings per share for the quarter climbed to 1.2 US cents, up from the 0.1 cent previously, while net asset value per share stood at US$1.15 as at May 31, down from the US$2.84 as at Aug 31 last year.

"Amidst the challenging market environment and oil price volatility, we continue to take steps to reduce costs, implement initiatives to improve operational efficiency and increase focus on vessel utilisation," said chief executive Jon Dunstan.

"Looking ahead, the short-term outlook for the industry still remains challenging, but we believe that our strategy of focusing our capabilities and maintaining operational excellence in key geographical areas will hold us steady.

Emas on Tuesday also said it has secured three new contracts for charters with oil majors in West Africa and Thailand, worth more than US$24 million.

This follows its earlier announcement for clinching a separate round of contracts worth US$30 million in the same region.

Emas was listed on the mainboard on Oct 8 last year, under the holding company of Ezra Holdings. Its results for the third quarter includes that of the companies held by Ezra as well as the pre-existing Emas entities from Oct 3 last year - when the reverse acquisition took place - to May 31 this year.