Ezra posts 34% drop in Q2 net profit, secures new contract win

SINGAPORE - Offshore and marine services provider Ezra Holdings has posted a 34 per cent drop in net profit to US$19.6 million (S$24.4 million) for the quarter ended Feb 28.

This was due to a weaker-than-expected performance by its offshore support services division and the absence of one-off gains last year from Ezra's sale of assets, the group said.

Revenue rose 22 per cent to US$300.4 million, mainly driven by the group's subsea services division, EMAS AMC.

The revenue increase was partly offset by a fall in revenue in its offshore support services division, EMAS Marine.

"The performance of EMAS Marine was a disappointment this quarter but I am pleased that the group as a whole still turned in a credible performance," said Ezra group chief executive and managing director Lionel Lee.

"This is in no small part due to our subsea services division producing three successive quarters of operational profitability."

Earnings per share for the quarter was 2.66 US cents, down from 3.74 US cents a year ago.

Net asset value per share rose to US$1.20 as at Feb 28, from US$1.17 as at Aug 31 last year.

Ezra also announced on Friday a new contract win to provide offshore installation of pipelines, umbilicals and ancillary equipment for Noble Energy for the Gunflint Project in the Gulf of Mexico.

The offshore works are scheduled to be carried out next year, Ezra said. It did not provide a project value.