Ezra swings into red in Q3 with US$3m net loss

SINGAPORE - Mainboard-listed Ezra Holdings reported on Friday a net loss of US$3 million (S$4.05 million) for the third quarter ended May 31, as sluggish oil prices weighed on activities of the oilfield services industry.

The group slipped into the red from a US$8.3 million net profit earned in the year-ago period.

For the first nine months of its financial year, Ezra posted a net profit of US$51.5 million, up 51 per cent on the year, though revenue for the period dropped 3 per cent.

Revenue dipped 3 per cent to US$390.7 million in the third quarter. This was due to a decrease in revenue of US$21 million from the subsea services division and US$16.1 million from the offshore support and production services division.

However, the decrease was partially offset by a US$25.7 million increase in revenue from the marine services division.

Given the current oil price environment, Ezra thinks that reduced oil & gas spending and activity is likely; it thus expects to face "strong headwinds" in the foreseeable future.

Said Mr Lionel Lee, Ezra's Group CEO and managing director: "Despite recent market challenges, Ezra has managed to maintain its revenue this quarter. We acknowledge that market conditions remain difficult, but we see that the longer-term prospects in the industry are showing gradual improvement."

"The Group is currently working to rationalise non-core assets to accelerate the deleveraging of and strengthening the Group's balance sheet.

No dividend was declared.